The cryptocurrency market has started 2024 with a powerful rally, adding approximately $240 billion to its total market capitalization since January 1st. The aggregate value of all digital assets has now surpassed $3.18 trillion, signaling a strong wave of renewed investor confidence and capital inflow.
Bitcoin and Ethereum are cited as the primary drivers of this growth. Bitcoin, trading near $93,600, has seen a weekly gain of over 7%, bringing its market cap close to $1.87 trillion and its market dominance to approximately 58.3%. Ethereum has shown relative strength with a weekly gain approaching 10%, trading above $3,230 and boasting a market cap of roughly $390.6 billion.
The surge is attributed to several key factors: renewed institutional interest amid growing ETF-related optimism, progress toward clearer regulatory frameworks in major jurisdictions like the U.S. and Europe, and a supportive macroeconomic backdrop with cooling inflation and anticipated interest rate cuts making risk-on assets more appealing.
While the rally is broad-based, performance among altcoins has been selective. XRP has emerged as a standout, posting a weekly gain of more than 27%. BNB and Solana (SOL) have also delivered solid advances of over 12%. Among mid-cap assets, Sui (SUI) recorded an impressive weekly gain exceeding 38%.
Despite the price appreciation, overall market sentiment remains cautious. The Crypto Fear & Greed Index sits at a neutral 49, and the Altcoin Season Index remains low, indicating capital is still concentrated in the largest, most liquid assets like Bitcoin rather than rotating broadly into speculative altcoins. Analysts suggest the market is in a recovery and stabilization phase, with the potential to challenge previous all-time highs if momentum is sustained.
