Cryptocurrency Market Cap Looks Set to Explode

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  • The cryptocurrency market looks like it is ready to explode
  • The crypto market cap has broken a 36-month downtrend and volume is at record levels
  • History indicates the next 1-2 years could be the next crypto bull run

Evidence of an imminent cryptocurrency bull run can come in all shapes and sizes, but the total market cap is a sure measure of the health of the market. One look at the cryptocurrency market cap today shows that we can allow ourselves a hand rub of excitement at the prospect that we are at the start of the next market cycle after two and a half years of downward action and false starts, with record breaking volume and a 36-month downtrend just broken.

Cryptocurrency Market Cap Breaks 36-Month Downtrend

A look at the cryptocurrency market cap on the logarithmic scale shows that we have convincingly broken a downtrend that began when Bitcoin topped out in December 2017:

Cryptocurrency Market Cap 1

Following attempted breakouts in July 2019 and February this year we can finally be confident that the performance of the markets in the last month or so, driven mainly by Bitcoin and Ethereum, has led us to break through this glass ceiling and allowed us to look forwards to a new cycle into 2020 and 2021. We can compare this with a similar scenario following the 2013-14 bull run:

Cryptocurrency Market Cap 2

The resemblance between then and now is uncanny, with the breakthrough in October 2015 kicking off the market cycle that would end in early 2018, a run that saw the market cap go from $4 billion to $715 billion by the time the bull run topped out:

Cryptocurrency Market Cap 3

Volume Shows Institutional Interest

This isn’t the only evidence that we could be on the verge of a huge move however. If we add in the trading volume we can see just how much cryptocurrency trading has grown in popularity since it last really made headlines in 2017:

Cryptocurrency Market Cap 4


As we can clearly see, the volume has ramped up to incredible levels since the bear market really took hold in November 2019. The peak buying volume in the last bull run occurred in December 2017, a record that was only topped again in February 2019.

In fact, the weekly buying volume has been permanently above the 2017 record since April 2019, with the week beginning May 11 this year seeing the cryptocurrency market’s highest ever buying volume.

This is an incredible fact borne out by the graph and just illustrates how much institutional buying of cryptocurrencies there has been in the past 18 months, dwarfing the retail-led boom of 2017. These institutions don’t pile billions into a market without being as sure as they can be that they are going to make bank from it, suggesting that, sooner rather than later, the cryptocurrency market could be about to see another epic cryptocurrency bull run.

And if that wasn’t enough, then this chart should help you whet your appetite (and sell your grandmother):

Cryptocurrency Market Cap 5