Bitcoin (BTC) and Ethereum (ETH), two of the most valuable crypto coins, managed to surpass the $20,000 and $1,400 markers, respectively. Other well-known altcoins, such as Ripple (XRP) and Litecoin (LTC), fell as total prices saw only modest increases in all categories. The largest gainer, Trust Wallet Token (TWT), saw a 24-hour increase of more than 8.61 percent. On the other side, The BinaryX (old) ended up being the biggest loser.

The market capitalization of all cryptocurrencies was $953.97 billion at the time of writing, representing a 24-hour decline of 0.04 percent.

Bitcoin price today
According to CoinMarketCap, the price of one bitcoin was $20,633.88, up 0.15 percent over the previous day. The price of Bitcoin was Rs 18.16 lakhs, according to Indian platform WazirX.

Ethereum price today
At the moment of writing, the price of ETH was $1,480.28, up 1.20 percent over the previous day. According to WazirX, the price of ethereum in India was Rs 1.30 crores.

Dogecoin price today
Currently trading at $0.06659, according to statistics from CoinMarketCap, DOGE experienced a 24-hour loss of 0.43 percent. Dogecoin’s worth in India was Rs 5.9600, according to WazirX.

Litecoin price today
The 24-hour decline for Litecoin was 4.30 percent. Its price at the moment of writing was $69.63. The cost of LTC in India was Rupees 6,071.01.

Ripple price today
The price of XRP was $0.3665, down 1.09 percent over the previous 24 hours. WazirX reported that the price of ripple was Rs 32.1513.

Solana price today
Solana price was $18.19, down 0.70 percent over the previous 24 hours. SOL was priced at Rs 1,701.00 in India, according to WazirX.

On Thursday, most cryptocurrencies saw an increase in worth. The market capitalization of all cryptocurrencies was $1.1 trillion, with a volume of roughly $60.9 billion over the previous day.

Bitcoin
The biggest and most well-known virtual money in the world, Bitcoin, increased 1.6 percent to $24,564.2. The market price of it was $470,3 billion. The value of the transaction was $28.9 billion.

Following the publication of the minutes from the January FOMC meeting, Bitcoin dropped to $23,600 yesterday. Despite the fact that it had just hit a peak, traders may have changed their attention to locking in profits, which led to a decline in price.

Ethereum
The second-largest virtual money, increased by two percent to $1,678.1 and has a market value of $202.5 billion. In the previous day, Ethereum trades were worth almost $8.8 billion.

“ETH has typically traded between $1,600 and $1,650. Overall, market players appear to be responding to the FOMC release in a variety of ways.”

Dogecoin
A virtual currency founded on memes, increased 1.9 percent on Thursday. It was valued at $11.4 billion on the market. The value of the transaction was $741.80 billion.

Shiba Inu
Shiba Inu market capitalization increased by 4% to $7.4 billion. In the previous 24 hours, there were $377.7 million in trades.

Solana
Solana increased 0.6 percent to $24.6 and has a $9.3 billion market value. In the previous 24 hours, Solana saw trades worth $841.4 million.

Polygon
The market capitalization of Polygon increased by 3.3 percent to $12.4 billion. In the last 24 hours, there were $692.2 million worth of transactions.

On Monday, cryptocurrencies continued to lose money. The market capitalization of all cryptocurrencies was $1.1 trillion, with a volume of $61.5 billion during the previous day.

Bitcoin
Bitcoin, the biggest and most used virtual currency in the world, decreased 1.39 percent to $24,355.5. At the time, it had a $470 billion market value. The value of the trade was $28.1 billion.

“During the weekend, Bitcoin rose to over $25,000. Today, it is down to $24,000. The fact that Bitcoin has maintained its weekly gains shows that buyers are still in the market. The next resistance level will be at $31,000, and there won’t be any significant impediments between if buyers can push BTC back to $25,250.

Ethererum
The second-largest virtual currency, decreased 0.9 percent to $1,678.5 and has a market value of $205.5 billion. In the previous day, Ethereum trades were worth $7.6 billion.

“Similar to Bitcoin, Ethereum has grown steadily and is now getting close to its $1,700 resistance level. A breakthrough could trigger a rise in the coming days.”

Dogecoin
Dogecoin, a virtual currency based on memes, decreased 1.8 percent to $0.1. It was valued at $11.5 billion in the market. There were $543.6 million worth of transactions.

Solana
Solana increased 10.4% to $20.8 and now has a $9.7 billion market cap. In the previous 24 hours, Solana’s trading volume was $1.3 billion.

Shiba Inu
Shiba Inu market capitalization of $7.3 billion decreased by almost 1.4 percent. In the previous 24 hours, there were $500.3 million in trades.

Polygon
With a market capitalization of $12.8 billion, Polygon share price dropped by 1.9% to $1.4. In the past 24 hours, there were $771.8 million worth of transactions.

Bitcoin and Ether fell in early Wednesday morning Asian trading, along with the other top ten non-stablecoin cryptocurrencies, as investors appeared to be taking profits after the year’s strong gains. Polkadot suffered the greatest loss. US equities were mixed on Tuesday as a result of Microsoft’s lower earnings guidance and the release of the US purchasing managers index, or PMI. The index, which measures business trends, was 46.6. While this exceeded expectations, a number less than 50 indicates that the economy is contracting.

Important Facts

Bitcoin traded 1.3% lower in the 24 hours to 8:45 a.m. in Hong Kong, at US$22,688, but was still up 6.8% in the previous calendar week. According to CoinMarketCap data, ether fell 4.6% to $1,555, losing 1.2% for the week.

Polkadot dropped 6.7% to US$6.15, the biggest drop on the top ten list. The token is still up 2.8% year to date.

Solana fell 5.7% to US$22.92, bringing the weekly loss to 0.2%. Cardano fell 5.7% to US$0.35, but was still up 2.1% for the week.

Over the last 24 hours, total crypto market capitalization fell 2.2% to US$1.03 trillion, while trading volume fell 6.4% to US$52.7 billion.

The Dow Jones Industrial Average rose 0.3% in the United States, while the S&P 500 Index fell 0.1%. The tech-heavy Nasdaq Composite Index fell 0.3% on the day.

Microsoft Corp reported better-than-expected earnings for the December quarter, but the stock fell 1.4% to $238.75 after the company’s earnings guidance for the next quarter disappointed investors.

The composite Purchasing Manager’s Index (PMI) for January, released on Tuesday, showed a contraction in private sector demand, with firms citing subdued customer demand and inflation denting client spending.

To try to slow inflation, the Federal Reserve of the United States raised interest rates by 50 basis points last month, to between 4.25% and 4.5%, the highest level in 15 years. Fed members will be in a “blackout period” before meeting to decide on the next interest rate move on January 31-February 1. CME Group analysts predict a 99.8% chance of a 25 basis point increase.

Market capitalization as a term has also entered cryptocurrency investing conversations over time. Its definition and application in cryptocurrencies are not exactly the same as in the traditional stock market. Cryptocurrency market cap is broadly defined as a metric that measures the total value of a particular cryptocurrency in the current market.

The market cap of a cryptocurrency is determined by dividing the total coins that have ever been mined by the price of one coin at a particular time. Market capitalization can be used as a valid measure of how stable an asset is likely to be.

This feature provides a brief introduction to cryptocurrency market capitalization, why it’s important to understand, and what it means for investors.

What is cryptocurrency market cap and how does it work?

Since the inception of Bitcoin, the first cryptocurrency, more and more cryptocurrency projects have entered the scene, each promising a different benefit or use to investors. Some altcoins boast unmatched transaction speeds, while others claim to offer the lowest fees.

Other coins, such as the privacy-focused altcoin Monero (XMR), offer airtight security and complete privacy. XMR transactions made through a specially encrypted Monero wallet are said to be completely anonymous and untraceable, making Monero an ideal coin for users with extreme cybersecurity concerns.

There are currently thousands of active cryptocurrency projects available for traders to invest in. Naturally, each of these coins will be valued differently in the market, and this is what cryptocurrency market capitalization is meant to measure.

The market capitalization of a particular coin is meant to give investors an idea of ​​how big the project currently is and how well it is doing.

The market capitalization of a cryptocurrency is calculated by multiplying the current market price of the coin by the total circulating supply. For example, if a certain coin is trading at $5 per unit and there are approximately 10,000,000 coins in circulation, its market cap would be $50,000,000.

Many cryptocurrency experts consider market capitalization to be the most important factor in determining a cryptocurrency’s viability as an asset. There are now a number of websites and online indexes that calculate and track market capitalization for various cryptocurrencies, as well as other important financial metrics. These sites allow crypto investors to track the dominance and popularity of their chosen coins.

Why does market capitalization matter?

The market capitalization of a crypto project can provide valuable insight into the relevance of that project, especially for investors looking to gauge the popularity of a particular coin over the long term.

For example, most cryptocurrency experts will agree that coins with large capitalizations above $10 billion are relatively safe investments. Investing primarily in such coins is usually considered a conservative strategy, as these cryptocurrencies are likely to be less unpredictable investments than other coins.

However, it is worth noting that even the most stable cryptocurrencies will still be more volatile in terms of their value than traditional investment products such as stocks or bonds.

Mid-cap cryptocurrencies are those with a market capitalization between $1 billion and $10 billion. Unlike large-cap cryptocurrencies, these cryptocurrencies are typically much more volatile, but may have more upside potential. Meanwhile, small-cap cryptocurrencies are those with a market capitalization of less than $1 billion. They are often subject to extreme price volatility, with their value often rising or falling significantly within hours.

Thus, small-cap cryptocurrencies are considered the riskiest investments one can make in cryptocurrencies, even though their growth potential is expected to be good in the short term.

How can market capitalization affect your investment strategy?

One viable way investors can apply their knowledge of market capitalization is by following a market capitalization weighted investment strategy. Under this strategy, the amounts that traders invest in their chosen cryptocurrencies are proportional to the current market capitalization of those coins.

To illustrate, this means that an investor looking to put $100 into total crypto investments should allocate the largest portion of that amount to coins with the largest market capitalization and smaller portions to other less popular cryptocurrencies.

However, it is important for novice crypto investors to keep in mind that the market is prone to dramatic price swings, even for large-cap coins. Therefore, the market capitalization of even the biggest and most popular coins is constantly changing. Since cryptocurrency is a relatively new asset compared to traditional assets such as stocks, there are currently few ways to predict how a particular coin’s value or growth trajectory is likely to change over time.

The unpredictability of cryptocurrencies is the main reason why financial experts encourage new traders to invest cautiously even in large crypto projects. It is always a good idea for novice investors to do their due diligence before committing to any investment and only put in as much money as they can afford to lose.