- Cryptocurrency market cap surpasses $2 trillion.
- Cryptocurrency space still facing many challenges and crackdowns.
It has been a remarkable week for the digital space as Bitcoin and other altcoins rallied pushing the total cryptocurrency market cap back above two trillion dollars.
According to CoinGecko the cryptocurrency market cap at the time of publication was $2.05 trillion, up by 1.5 percent in the last 24 hours. Bitcoin the latest digital asset by market cap was up by 42.2 percent and Ethereum dominance was at 18.3 percent.
The recent rise in the cryptocurrency market cap has been credited to the surge in the price of some digital assets. In addition to Bitcoin and Ethereum, assets like Solana (SOL), Cardano (ADA), Ripple (XRP), and Terra (LUNA) have recorded massive growth in the last seven days.
Bitcoin went as high as $48,152, the highest level since May, as the token showed staying power above its 200-day moving average. Other tokens like ADA, XRP, and SOL were up by 47 percent, 57 percent, and 78 percent respectively over the past seven days.
It is worth knowing that the cryptocurrency market cap surpassed $2 trillion again since last achieving the mark on May 17 this year. However, after hitting the peak of more than $2.5 trillion in May the crypto market witnessed a major pulled back and saw a couple of months of a downward trend to as low as $1.19 trillion on July 20.
Cryptocurrency market still facing many challenges, crackdowns
Although the cryptocurrency market is regaining momentum and surging once again, it is important to note that the crypto space is still facing major struggles in the area of the United States infrastructure bill and mining crackdown among other obstacles.
The cryptocurrency space recently failed to win a change to digital currency tax reporting rules in a U.S. infrastructure bill, leaving intact language for broad oversight of cryptocurrencies in the legislation that passed the Senate on Tuesday.
Furthermore, China among other countries has also intensified its clampdown on crypto miners, with officials in the hydropower-rich Sichuan province ordering miners to shut down operations in the region. Earlier, Beijing called for measures to stamp out bitcoin mining amid concerns over its environmental impact
Global regulators has also called for digital currencies to carry the toughest bank capital rules of any asset, with the Basel Committee on Banking Supervision warning that the growing use of crypto assets “has the potential to raise financial stability concerns”.