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Since the COVID19 situation became a global pandemic around early to mid March 2020 the cryptocurrency market has reacted with some notable highs and lows between the dates of March 7th and 13th 2020.

In total, all cryptocurrencies combined lost half of its market cap over this time. Since, the market has managed to recover most of these losses in a steady period of growth between March 14th and April 28th 2020 (a period of roughly one and a half months).

More recently, between the dates of April 29th and April 30th inclusive, we have witnessed a boom in overall market cap as well as token values. Over the course of today there has been a small dip in these numbers, however when taken in context of the overall trends this looks to likely be a temporary blip on the course of a steady sustained growth.

These market movements are notably led by Bitcoin, which currently dominates the market with a share which comprises more than half of the total market cap for all cryptocurrencies.

Cryptocurrency Market Cap Insights

Around the beginning of March 2020, the cryptocurrency market suffered a significant dip in token value and market cap.

Between March 7th 2020 and March 13th, 2020 - the overall market cap of all cryptocurrencies dropped by more than half (52%): from $264,045,436,207 to $126,056,790,324. This represented a loss of $137,988,645,883 in total market cap.

Over the subsequent month and a half (46 days to be exact), the market managed to recover 84% of its valuation - reaching $224,145,070,889 by April 28th, 2020. This strongly indicates that the market has naturally recovered to an accurate valuation, particularly considering tokens such as Bitcoin. 

Most recently, the global market cap significantly increased in a short period of time: recovering an additional 15.43% of its value (from March 7th) in a few short days. This brought the total recovery from 84.89% on April 28th, to 99.43% on April 30th.

Bitcoin Leads Market Change

As is often the case, Bitcoin has been the bellwether for market movements during this period: with changes in token value and volume being reflected in the overall performance of cryptocurrency markets. This is likely because Bitcoin possesses the largest market-cap of all cryptocurrencies: comprising 62.99% of the total market cap of all tokens combined as of March 7th 2020.

Bitcoin’s market cap dropped by 50.86% between the dates of March 7 and March 2013 2020, from $166,335,143,882 to $81,743,478,762. This decrease, accordingly, comprised 61% of the market cap decrease seen across all cryptocurrencies in total.

Between the dates of April 28th to 29th, and April 29th to 30th: Bitcoin also saw daily value increases of 14% and 5.62% respectively.
 

What Has Caused This?

It is difficult to conclude absolutely as to what caused the most recent price and market cap activities for Bitcoin and cryptocurrency in general, however there are a few potential factors which are likely to have contributed.

COVID19, for example, began to rock non-crypto markets around the beginning to the middle of March of this year; causing uncertainty. It would not be unreasonable to use correlation to assume that the situation negatively affected crypto markets around the same time. Fortunately, uncertainty surrounding the coronavirus has fallen somewhat with many countries starting to exit quarantine and publish exit-strategies for lockdown - raising confidence somewhat.

Another reason, which has been cited by many to be responsible for the so-called “Bitcoin value surge” is the network’s forthcoming halving event which sees the rewards distributed to miners being reduced by half as a means of tackling inflation and preserving the value of each individual token.

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