Crypto Market Cap Surges by Nearly $1 Trillion in Six Weeks

The crypto market has been on an uptrend since early August, with Bitcoin leading the charge. This recovery follows a prolonged bear market that lasted from October last year.

The total cryptocurrency market cap has grown significantly, increasing from $2.06 trillion to over $2.91 trillion in just six weeks, adding nearly $1 trillion to its value.

This surge in market capitalization raises questions about whether this is the start of a new bull market. One indicator that suggests it could be is the Fear & Greed Index, which has returned to 59 as of writing, indicating a shift from fear to greed.

The index was at 45 last week, but after Bitcoin's price broke above $85,000, sentiment changed dramatically. While extreme greed levels are typically seen near the end of an uptrend, greed can also mark the early stages of a bull cycle.

Aside from market sentiment, other factors support the potential start of a crypto bull market. For instance, Spot Bitcoin ETFs saw massive net inflows of $999 million, with BlackRock, Ark & 21Shares, and Fidelity leading the way with $381.37 million, $289.12 million, and $238.84 million, respectively.

The recovery is not limited to Bitcoin, as Ethereum ETFs also added capital, bringing the daily net inflow from both assets to $1.27 billion. Furthermore, Bitcoin has reclaimed all its long-term Moving Averages after spending 300 days below them.