Crypto market cap drops to $ 2,000,000 for the first time since May

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The total value of all cryptocurrencies in circulation – a major indicator for the health of the overall market – reached $ 2 trillion on Wednesday for the first time in nearly three months, offering compelling evidence that buyers have regained control.

Measured by market capitalization, the value of digital assets peaked at $ 2,007 trillion on Wednesday, according to data provided by Coingecko. Over the past 24 hours, the digital asset class has grown 4.6%. Week over week, the market added 25%, or $ 400 billion.

The cryptocurrency market appears to have recovered after a grueling three-month period. Source: Coingecko

Bitcoin (BTC), which is the largest and most influential cryptocurrency, accounted for 43.7% of the overall market. Ethereum (ETH), meanwhile, took an 18.9% market share.

At the time of writing, Bitcoin was up 3.3% to $ 46,343 and Ether had risen 5.2% to $ 3,240, according to Cointelegraph Markets Pro.

As Cointelegraph reported, the cryptocurrency market hit a cumulative valuation of $ 1,000 billion in January before more than doubling three months later. Asset values ​​peaked at nearly $ 2.6 trillion on May 11 before a major slowdown halved total market capitalization.

A confluence of forces are working together to aid in the recovery of the crypto. A wave of institutional buying, a steady build-up of retail investors, and billions of venture capital funds for crypto and blockchain startups all contributed to the rally. Shades of supply squeeze were largely responsible for the rally in Bitcoin, which appears to have paved the way for altcoins to reaffirm their dominance.

Related: Falling US Dollar Helps Bitcoin Bulls Ahead of $ 50,000 BTC Price Showdown

Crypto markets maintain their bullish bias despite some worrying regulatory developments in the United States. As Cointelegraph reported, President Biden’s infrastructure deal was recently passed in the Senate without much needed clarification on what constitutes a cryptocurrency broker.

The version that passed through the Senate earlier this week may impose tax reporting requirements on protocol developers that many in the crypto industry deem impractical. The bill is not expected to reach the House of Representatives before the end of the year.