Bitcoin Surpasses Silver to Become the 8th Largest Asset by Market Cap Globally
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Highlights:
- Bitcoin reached $89,560, surpassing silver’s market cap with a $1.736 trillion valuation.
- BTC has surged 30% in the past week, while silver has dropped 6.24%.
- Trump’s election victory boosted optimism for Bitcoin, influencing institutional demand and prices.
Leading cryptocurrency Bitcoin (BTC) has achieved a new milestone, reaching the $89,560 mark during the early Asian trading hours on Tuesday. With this, Bitcoin’s market cap has exceeded silver’s, reaching a valuation of $1.736 trillion. This achievement positions it as the world’s 8th largest asset.
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According to data from Infinite Market Cap, this marks the second time Bitcoin has surpassed silver this year, having previously overtaken the commodity in March. Silver has experienced a 6.24% decline over the past week, bringing its market cap to $1.732 trillion. In contrast, Bitcoin has risen by approximately 30% during the same period.
With this latest rally, Bitcoin now ranks just behind global assets, including gold, valued at $14.7 trillion, and tech giants like NVIDIA, Apple, Microsoft, Alphabet, and Amazon. Saudi Aramco, the national oil company, is seventh, with a value of $1.8 trillion. Despite an impressive year-to-date increase of over 100%, Bitcoin would need to increase tenfold from its current level to match gold’s market cap.
The Kobessi Letter, a prominent capital markets commentary, highlighted this Bitcoin milestone, stating:
“The fact that gold is still 10 TIMES larger than Bitcoin is incredible. Not only does this show how big gold is, but it also shows how big Bitcoin can be.”
Bitcoin’s Rally Boosts Related Indices and Stocks
Bitcoin’s strong performance this week has boosted related indices as investors turn to alternative, high-risk investments instead of traditional assets.
The broader “Bitcoin Industrial Complex” index, which includes U.S.-listed spot Bitcoin Exchange-Traded Funds (ETFs), MicroStrategy, and Coinbase, hit a record billion in combined daily trading volume on November 11, as BTC surpassed the $89,500 mark. Bloomberg senior ETF analyst Eric Balchunas shared this update on X.
The Bitcoin Industrial Complex (ETFs + MSTR, COIN) saw $38b in trading volume today, lifetime records being set all over the place, incl $IBIT which did $4.5b, which points to a robust week of inflows. Just an insane day, it really deserves a name a la Volmageddon pic.twitter.com/rcOLs0MhNF
— Eric Balchunas (@EricBalchunas) November 11, 2024
Coinbase stock closed at $334.24 on Monday, reaching a three-year high. MicroStrategy’s stock also hit a new all-time high, surpassing $351, its first in nearly 25 years.
Main Factors Driving Bitcoin’s Price Surge
The latest Bitcoin rally has been driven by multiple factors, including rising institutional demand and growing inflows into spot Bitcoin ETFs. According to the latest reports, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a trading volume of $4.5 billion on November 11.
Additionally, the U.S. Federal Reserve’s 25 basis point rate cut, along with the pro-crypto stance of Donald Trump’s presidential victory, has contributed to the surge. Moreover, the excitement surrounding the potential creation of a U.S. Bitcoin reserve has further boosted market sentiment.
Key events this week, including Jerome Powell’s speech and CPI/PPI data, could impact Bitcoin’s price and the Fed’s rate policy. A potential rate cut may influence market sentiment and cause a pullback in Bitcoin’s price.
Analysts believe that if this sentiment continues, Bitcoin could hit the $100,000 mark by the end of 2024. At the time of writing, BTC was trading at $87,919, reflecting a 7.65% increase in the past 24 hours.
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