Investors breathed a sigh of relief and sparked bullish hopes as the global cryptocurrency market topped $1 trillion in market value in the past 24 hours.

Strong buying interest in the world’s largest digital currency, Bitcoin (BTC), has taken it well above $22,700. In contrast, the second-largest cryptocurrency Ethereum (ETH), has breached $1,600, lifting the entire crypto market over the past 24 hours by about 5%.

The crypto market capitalisation hit $1.01 trillion for the first time since June 13, after plunging prices over the past few weeks. BTC’s market cap is $420 billion, while ETH’s $120 billion market cap has increased by $20 billion in the past 24 hours.

According to CoinGecko, an independent cryptocurrency data aggregator, ETH has gained 54% in the past month. The gains are due to a long-awaited “merge” upgrade that will transform ETH from its current state as a proof-of-work (PoW) blockchain to an energy-efficient proof-of-stake (PoS) network in September. The asset, dubbed “Ethereum 2.0,” fell below $1,000 less than a week ago.

According to experts, while there are signs of recovery in the crypto market, it is too early to call it a bull market.
“Without the headwinds that support the rally, most factors that lead to a crypto winter remain in place. Investors can add a small amount at this point and wait for the overall sentiment to improve before joining the bull market,” Arijit Mukherjee, founder of NFT marketplace Yunometa, told Benzinga.

“What we saw this week was an upward breakout. But that doesn’t mean the uptrend will continue,” said Jenny Zheng, Bybit’s head of NFT business development.

Anndy Lian, the chief digital adviser at the Mongolian Productivity Organisation, said there was no way to stop the bear market that was part of the financial cycle. “Last week, we saw a bullish knife trade setup and everyone was excited to say that the bulls are back. Naive investors are unrealistic and misunderstood,” Lien said.

The best-selling author added that bear markets, which are synonymous with instantaneous price increases, have been negative for the crypto market in the past six months, suggesting that the bear market trend is continuing.
Philip Verrien, head of the Pollen DeFi project, said: “Based on historical price patterns, the market is still in a bear channel, starting in May. The two-week uptick is only temporary. This is far from a bull market”.