LearningCrypto FundamentalsReading Crypto Markets
Module 2 of 26 min read

Reading Crypto Markets

Market cap, dominance, on-chain metrics, and how to evaluate crypto assets.

Market cap in crypto

Just like , a 's is the price multiplied by the circulating supply. Bitcoin has the largest market cap and acts as the benchmark. When Bitcoin dominance (BTC's of total crypto market cap) rises, it often means capital is into Bitcoin.

Market cap = price × circulating supply. Bitcoin dominance = BTC's share of total crypto.

Trading volume and liquidity

High indicates active markets and narrow - spreads. Low-volume can be easily manipulated by "" — large holders who can move prices with a single trade. Always check 24-hour volume relative to before buying any crypto .

The Bitcoin halving cycle

Approximately every four years, Bitcoin's block reward halves — reducing the rate at which new BTC enters circulation. Historically, halvings have preceded significant bull markets as supply growth slows against consistent demand. The most recent halving was April 2024, cutting rewards from 6.25 to 3.125 BTC per block.

On-chain metrics

Unlike , blockchains are transparent — all transactions are public. metrics like active addresses, transaction , inflows/outflows, and movements provide unique investment signals. High exchange outflows (people withdrawing to cold wallets) often signal hodling behavior and .

On-chain data gives crypto investors a signal not available in any other asset class.

Test Your Knowledge

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Quick Quiz1 / 4

Bitcoin dominance rising typically suggests: