Taking a look at this month’s total market cap, we can see that the number rose from just under $1 trillion on February 1st ($972,993,846,107) to a peak of $1.7 trillion ($1,763,857,230,719). This represents a staggering 81 percent increase in value, which is especially impressive when you consider that the market cap only reached $1 trillion for the first time at the beginning of January. The most obvious reason for this increase is that Elon Musk, CEO of Tesla and for a brief time the wealthiest person in the world, announced that Tesla had bought $1.5 billion in Bitcoin. The market took this news as a significant sign of real-world adoption, and it skyrocketed the price of Bitcoin, along with many altcoins.
The market cap then sharply fell to around $1.5 trillion ($1,511,016,616,346) on the 23rd. Drops like this, uncorrelated to any specific press, is common behaviour for the crypto market, as it has always been volatile due to it being a newer asset class, as well as due to the sheer number of retail investors in the space. This is a market correction, which happens when the market re-establishes the prices of its assets in closer accordance with their true value, triggered by an overinflation of price (or arguably when a value trails too far off from its just price). Admittedly, we collectively have no idea what the “just price” of Bitcoin should be, as there has only been 12 years of “price discovery”. So it might also just be some traders judging that it was a good time to take their profits.