Emily Walker
Bitcoin’s remarkable price surge, which commenced just after the US presidential elections, is significantly impacting the economy. The cryptocurrency recently soared to over $89k, marking a 27% rise compared to the previous week. This surge has led to record inflows into Bitcoin ETFs, contributing to substantial fund growth. Consequently, Bitcoin’s escalating price is altering the list of the largest global assets based on market capitalization.
#Bitcoin has surpassed silver, now ranking as the 8th largest asset by market cap! pic.twitter.com/RAPCJd5gd2
— MEXC (@MEXC_Official) November 12, 2024
With these developments, Bitcoin is now positioned at 8th place in the “Top 10 Largest Assets by Market Cap”, boasting a market cap of $1.756 trillion, surpassing silver’s $1.736 trillion. This is the second instance where Bitcoin has outperformed silver, driven by an optimistic outlook on Bitcoin ETFs and blockchain technology.
The rise of Bitcoin among the world’s most valuable assets is a reflection of increasing public endorsement of digital currencies as viable alternatives to traditional ones like gold.
Bitcoin Hits New Heights at $89k
This week, Bitcoin has experienced a striking rally, reaching a new high of $89k. On November 12th, the cryptocurrency surged over $89,000, representing an 11.3% increase, while silver experienced a 2% decline, allowing Bitcoin to secure the 8th position on the asset list.
Currently, Bitcoin is just behind Saudi Aramco, the 7th largest asset. The leading positions are held by Amazon, Google, Microsoft, Apple, Nvidia, and gold, with gold maintaining its status as the largest asset globally, commanding a market cap of $17.667 trillion, exceeding that of Nvidia and Apple by approximately $3 trillion.
A Significant Achievement
The Kobessi Letter states that Bitcoin’s present market valuation and its price movements underscore its potential. The commentary highlights that, despite gold being ten times larger than BTC, there is considerable optimism regarding the further growth of Bitcoin as a leading digital asset.
Recently, Bitcoin’s rise has been partly attributed to Trump’s impressive election victory and his positive stance toward the crypto community. With Republicans winning both chambers in the recent elections, the incoming president could more easily implement crypto-friendly initiatives.
Strong Demand and Optimism from Institutions
In addition to the “Trump Effect,” Bitcoin benefits from a bullish sentiment among institutional investors. A growing number of financial entities are incorporating BTC and cryptocurrencies into their portfolios, driving up asset prices. Notably, Bloomberg’s senior analyst Eric Balchunas highlighted a significant uptick in Bitcoin ETF trading volumes, with the iShares Bitcoin Trust (IBIT) recording a trading volume of $4.5 billion just yesterday.
MicroStrategy also stands to gain from the Bitcoin surge, as Michael Saylor’s company holds the largest Bitcoin-based portfolio, currently trading at $340 a share. Recently, MicroStrategy revealed its acquisition of 27,200 BTC, bringing its total holdings to 279,420 BTC.
Featured image from Siam Bitcoin, chart from TradingView