Total crypto market cap could top $4 trillion in Q2 — Analyst

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The full crypto marketplace capitalization reached a caller all-time precocious of $3.73 trillion connected Dec. 14, 2024, but since then, the metric has dropped 21% to $2.91 trillion.

Despite the existent drawdown, 1 expert believes the metric could scope caller highs successful Q2 2025.

Total marketplace headdress and planetary liquidity scale are correlated

Mark Quant, a crypto markets researcher, presented a survey that indicated that a rising Global Liquidity Index (GLI) could pave the betterment way for the crypto market, perchance pushing the full crypto marketplace headdress to caller all-time highs supra $4 trillion successful the 2nd 4th of 2025.

The Global Liquidity Index (GLI) measures the easiness of financing successful planetary fiscal markets, and it tin beryllium utilized arsenic a metric to recognize planetary fiscal conditions.

When GLI rises, it indicates that investors person entree to much capital, which boosts hazard connected assets specified arsenic crypto.

Cryptocurrencies, Gold, Bitcoin Price, Markets, Price Analysis, Market Analysis

As illustrated successful the chart, Quant explained that the GLI and the TOTAL marketplace headdress carried a beardown 0.77 correlation with a 74-day offset. With the GLI being the starring indicator, its enlargement often led to a bullish inclination successful cryptocurrencies. While the marketplace mightiness determination sideways implicit the adjacent 30 days, the expert predicted aboriginal April could statesman a bullish rally. Quant said,

“Once liquidity is afloat priced in, $TOTAL could transcend the $4T marketplace cap, aligning with erstwhile liquidity-driven cycles.”

On a broader scale, Quant’s investigation draws similarities to Lyn Alden’s probe from September 2024. The research piece “Bitcoin: A Global Liquidity Barometer” mentioned that Bitcoin moved 83% of the clip toward planetary liquidity successful immoderate fixed 12-month period.

Compared to different large plus classes specified arsenic SPX, GOLD and VT, Bitcoin’s correlation with planetary liquidity is the highest. Yet, the crypto plus was exposed to short-term deviations from clip to clip by “idiosyncratic events oregon interior marketplace dynamics.”

Is the crypto marketplace bottommost in?

Although the TOTAL marketplace headdress has been down 20% implicit the past 3 months, Dom, a marketplace analyst, said it was currently testing its erstwhile rhythm 2021 precocious and a March 2024 precocious arsenic support.

The expert explained that the yearly comparative measurement value mean terms oregon rVWAP sat close beneath the existent marketplace cap, which added further enactment to its marketplace structure.

Dom said,

“This is precise wide connected this monthly illustration and adds to the thought that acceptance nether existent monthly lows would interruption the bull market.”

Similarly, Daan Crypto, a crypto trader, highlighted that the existent play adjacent would beryllium important from a bullish perspective. Currently, the TOTAL crypto marketplace headdress remains nether its 2021 highs, which means determination is bearish acceptance seeking dominance successful the precocious clip framework chart.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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