In a remarkable milestone, Bitcoin has surpassed silver to become the world’s eighth most valuable asset by market capitalization.
The price of the leading cryptocurrency hit an all-time high of over $72,000 on March 11, pushing its valuation to an impressive $1.42 trillion.
This historic performance puts Bitcoin ahead of silver, which now has a market capitalization of $1.387 trillion.
TLDR
- Bitcoin’s market capitalization has surpassed that of silver, making it the world’s eighth most valuable asset with a valuation of $1.42 trillion.
- Cryptocurrency prices hit an all-time high of over $72,000 on March 11 due to significant capital inflows into cryptocurrency products and an impending decline in digital token supply growth.
- The success of the spot Bitcoin exchange-traded fund (ETF), launched in the U.S. on January 11, has been a pivotal factor driving recent momentum, with ETFs from BlackRock Inc. and Fidelity Investments playing a key role.
- Bitcoin’s rally is creating about 1,500 new “millionaire wallets” every day, but the exact distribution of ownership between individuals and companies is difficult to determine based on blockchain data.
- The Bitcoin halving event scheduled for next month is expected to halve the supply of new Bitcoins, contributing to bullish sentiment in the cryptocurrency market.
Bitcoin’s unprecedented rise has been fueled by a confluence of factors, including significant capital inflows into cryptocurrency products and expectations of a slowdown in supply growth of digital tokens.
The recent launch of a spot Bitcoin exchange-traded fund (ETF) in the United States on January 11th was an important catalyst for the cryptocurrency’s momentum.
BlackRock Inc. and ETFs from industry giants such as Fidelity Investments attracted net inflows of about $9.5 billion, further strengthening Bitcoin’s rise.
As Bitcoin continues to break new ground, its market capitalization has already surpassed that of Meta (formerly Facebook), which now stands at $1.2 trillion.
The next target on Bitcoin’s radar is Google’s parent company, Alphabet, which is currently valued at just under $1.7 trillion.
But some Bitcoin enthusiasts are setting their sights on a much more ambitious goal: to overtake gold as the world’s most valuable asset.
With gold’s market capitalization reaching a whopping $14.7 trillion, Bitcoin would need to increase more than tenfold, surpassing $720,000 per token, to achieve this feat.
According to cryptocurrency analytics firm Kaiko Research, the continued upward trend has not only driven Bitcoin prices higher, but has also resulted in approximately 1,500 new “millionaire wallets” being created every day.
While the exact distribution of ownership between individuals and companies remains difficult to determine based on blockchain data, this daily creation rate is lower than during the 2021 bull market, when more than 4,000 wallets per day reached $1 million.
Looking ahead, Bitcoin is scheduled to undergo a significant event known as the halving next month. The process involves halving the supply of new bitcoins, which is expected to contribute to bullish sentiment in the cryptocurrency market.
ETF demand, limited supply, and expectations of easing monetary policy have combined to overshadow any memories of a bear market in 2022 and position Bitcoin for further growth.
As Bitcoin continues to gain awareness and adoption, its market capitalization is making waves in other parts of the world.
The London Stock Exchange (LSE) recently announced that it has approved applications for Bitcoin and Ethereum exchange-traded notes, and Thailand’s securities regulator has signaled that it will open an overseas cryptocurrency ETF for retail buyers.
These developments highlight the growing institutional interest in cryptocurrencies and the potential for increased mainstream adoption.
Bitcoin’s journey to the top of the global asset rankings has been nothing short of remarkable, but it is important to note that the cryptocurrency market is still very unstable and subject to rapid fluctuations.
Nonetheless, the recent milestones achieved by Bitcoin serve as evidence of its growing prominence and acceptance of digital assets as a legitimate asset class.
