Market Capitalization
What it shows
The global market-cap change shows how the total value of the whole crypto market is growing or shrinking, serving as a measure of capital inflow or outflow.
How to read it
Read the market-cap change together with volume and BTC dominance: a rise backed by volume is real capital, while a rise without volume has tended to be fragile. It is a macro picture of the whole market.
Parameters
- Global market-cap change
- A rise with growing volume = real capital inflow; a fall = capital leaving the market.
- Positive reading: Rising market cap with volume is historically a healthy capital inflow into the market.
- Negative reading: A shrinking market cap: historically capital outflow and weakening interest.
- Neutral reading: A flat market cap: the market in balance, no clear flow.
Example
Total market cap rises together with volume, which means real fresh-capital inflow, historically healthy fuel for the trend. A falling market cap means capital leaving the market; a flat cap is consolidation awaiting a catalyst.