11 months ago • 1 min
If you were in crypto in 2017, you might have euphoric memories: token prices were going vertical, and investors (nay, speculators) were making life-changing gains regardless of which altcoin they put their money on. It was a fantastic time to be in the market, but let’s be honest, the hype was way bigger than the substance. The market now is about the size it was at the peak of that glorious bubble. But these days, some would argue, the substance might outweigh the hype.
This chart shows the Crypto Total Market Cap index (Ticker: TOTAL, on TradingView) priced in US dollars – the total supply of the top 125 digital assets multiplied by their current price. It’s a constantly evolving list: inactive or shady projects regularly get the boot and up-and-coming projects take their place, which makes it a fairly good representation of the overall size of the market. In the December 2017 “blow-off top”, the peak of that year’s rally, the index reached $761.7 billion. It’s sitting at around $850 billion now.
Technical analysts would call this an “S/R Flip”, where the previous price resistance (in this case, the 2017 high) turns into support. Put another way, it’s where the ceiling becomes the floor. You can see how the index bounced off that area (shaded blue strip) back in June last year, and how it’s still held onto it since the FTX drama in November. As long as it can keep holding it, there’s little cause for concern...
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