Crypto market returns above $2.8 trillion as altcoins surge

The cryptocurrency market regained a total value of more than $2.8 trillion during a broad weekly rally, briefly moving close to $2.9 trillion on Saturday, Sept. 19, according to news.bitcoin.com.

Bitcoin drove much of the recovery. Its price reached $81,914, the highest level since Sept. 4, after falling below $75,000 on Sept. 16. Bitcoin later pulled back and was trading slightly above $81,000 at about 2:45 p.m. Eastern time, but still recorded a 5% gain for the week.

The recovery marked a sharp reversal after the failed CLARITY Act vote. Bitcoin’s advance began to slow below $82,000, while several alternative cryptocurrencies continued climbing and reached fresh highs.

HYPE and Zcash lead the advance

Hyperliquid’s HYPE token was among the strongest performers. A rally on Saturday lifted it to $94.48, giving the token an 18% gain for the week and a 260% increase since the beginning of the year. Its market value moved above $20 billion as a result.

Zcash also posted a powerful advance. The privacy-focused cryptocurrency recorded several daily gains in the double digits, reaching $1,590 and its highest level in several years. Its market capitalization approached $25 billion, leaving it ranked as the ninth-largest digital asset by that measure.

Zcash gained 36% over the week and was up almost 190% for the year. Even after that rise, it remained 54% below its record price of $3,191.93, set on Oct. 28, 2016.

NEAR, described in the report as another privacy coin, climbed 75% between Sept. 13 and Sunday afternoon. Its price rose from $2.33 to $4.06. Avalanche’s AVAX token also advanced strongly, gaining nearly 50% over the same period.

The gains were not limited to the week’s biggest winners. Ether and XRP, among other large-cap altcoins, rose by between 3% and 6%.

Altcoin value expands

The broad rise in alternative cryptocurrencies lifted the total value of the altcoin market from $1.17 trillion at the start of the week to a peak of $1.23 trillion on Saturday. By Sunday afternoon, that figure had eased to just below $1.2 trillion.

That movement helped push the value of the entire cryptocurrency market close to $2.9 trillion before a modest retreat. The rally therefore extended beyond bitcoin, with a wide range of tokens contributing to the market’s recovery.

The performance of privacy-oriented assets was particularly notable. Zcash’s rise stood out both because of its weekly increase and because it brought the token back to a multi-year high. HYPE’s gains were also significant, combining a new record price with a market value above $20 billion.

Debate grows over an altcoin season

The latest gains have prompted some market commentators to argue that an altcoin season may be starting. The Money Ape, a prominent commentary account, said the market had entered a confirmed mini altseason and pointed to a technical development involving ether and bitcoin.

The ETH/BTC trading pair, which compares ether’s value with bitcoin’s, broke a downtrend that had lasted five years. Market participants have historically treated such a break as a potentially positive sign for altcoins relative to bitcoin.

Not all observers are equally optimistic about the breadth of any future advance. Ted Pillows said an altseason is expected during the next bull run but suggested that the gains would be concentrated among stronger, higher-quality alternative cryptocurrencies.

That distinction matters because the latest rally has produced very different results across the market. While HYPE, Zcash, NEAR and AVAX posted substantial gains, ether and XRP rose more modestly. Bitcoin also remained the market’s main source of momentum, despite its inability to hold above $82,000.

By Sunday, bitcoin was positioned between a still-intact daily uptrend and signs that its latest advance had begun to lose force. The market’s next phase will show whether the recent altcoin strength develops into a broader rotation away from bitcoin or remains a short-lived burst within the wider recovery.