Bitcoin

Bitcoin shows the way? Crypto market cap set to rally 3x – Here’s how

While the global crypto market has continued to see a blend of bulls and bears, an analyst has highlighted the possibility of a 3x rally.

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  • The global crypto market cap, amid fluctuations, was valued at $2.023 trillion at press time.
  • Analyst Javon Marks predicted a potential triple growth in the market, based on historical patterns.

So far, the global crypto market has struggled to maintain a consistent uptrend. Instead, it has been exhibiting mixed movements, with fluctuating levels of bullish and bearish activity. 

Over the past two weeks alone, the global crypto market cap has plunged to as low as $1.69 trillion, then surged to $2.13 trillion before sitting at a valuation of $2.023 trillion at the time of writing. 

3x rally for the crypto market?

Despite the market’s unpredictable behavior, renowned crypto analyst Javon Marks has provided an optimistic outlook for the future.

On the social media platform X (formerly Twitter), Marks observed a recurring pattern in the total crypto market cap, reminiscent of previous cycles that precipitated substantial rallies.

He suggested that the market might be on the cusp of a similar monumental movement. 

Historically, such setups have led to nearly threefold increases in market cap, driven by significant recoveries and price surges in various altcoins.

This potential upcoming phase could herald a season of robust growth, echoing past rallies that benefitted multiple cryptocurrencies across the board.

Source: Javon Marks on X

However, how literal could this prediction be? To know that, it is worth looking at Bitcoin itself, the flagship cryptocurrency that often sets the tone for the broader market.

At press time, BTC traded at $58,371, marking a 4.6% decline over the past day. 

This recent downturn is part of a larger trend seen over the past few weeks, where Bitcoin [BTC] has dropped by 9.3% from earlier highs around $64,000.

The movements of Bitcoin are crucial, as they typically have ripple effects across the entire crypto market, influencing investor sentiment and market stance.

Fundamental outlook

AMBCrypto then delved into Bitcoin’s fundamentals to gauge the likelihood of a rally on the horizon. At press time, the king coin’s Market Value to Realized Value (MVRV) ratio stood at 1.76. 

Source: CryptoQuant

The MVRV compares the market cap against the realized cap, providing insight into whether Bitcoin is over or undervalued relative to its “real” worth.

A ratio of 1.76 suggested that Bitcoin might be undervalued at press time, a level which historically aligns with potential bullish momentum.

If this trend holds, it could be a precursor to the broader market rally, as predicted by Marks.

Moreover, an increase in Bitcoin whale transactions—or transfers exceeding $100k—signals growing interest from large-scale investors.

Source: IntoTheBlock

According to data from IntoTheBlock, there has been an uptick in whale transactions, rising from less than 12,000 on the 11th of August to over 17,000 as of press time.

Such transactions indicate activity that could either stabilize the market or prepare it for the next phase of severe volatility.