On May 21, the world’s leading cryptocurrency, Bitcoin (BTC), made an impressive leap, hitting a new all-time high (ATH) close to the $110,000 mark. The sharp increase was driven by a considerable inflow of buyers, pushing Bitcoin’s market capitalization beyond $2.1 trillion. Consequently, Bitcoin has claimed its place among the globe’s most valuable assets, occupying the fifth spot in market capitalization, outperforming prominent companies like Amazon and Google.
As reported on the Companies Market Cap website, this price hike lifted Bitcoin’s market capitalization to approximately $2.182 trillion. Bitcoin currently trails only behind tech behemoths Apple, NVIDIA, and Microsoft, and the conventional safe-haven asset, gold, which boasts a whopping capitalization exceeding $22 trillion.
Rob Nelson from The Street shared insights from a roundtable discussion held in February, featuring Gracy Chen Chen, Bitget’s Managing Director, who expressed optimism about Bitcoin’s prospects. Chen believes that with rising institutional adoption, changing regulations, and new practical applications, Bitcoin’s market cap will eventually surpass that of gold, possibly this year or in the next few.
Once referred to as “digital gold,” Bitcoin’s role has transformed substantially. Initially viewed as a risk-averse asset, it has become more intertwined with traditional financial markets, particularly with the expected approval of spot Bitcoin ETFs in 2024. Chen highlighted this shift, pointing to Bitcoin’s increased correlation with the US stock market.
Analysts are predicting a possible surge to $150,000, bolstered by positive regulatory developments in the US. Antoni Trenchev, co-founder of digital asset trading platform Nexo, sees the current market landscape as favorable for Bitcoin. He noted that we’re still in the fourth year of Bitcoin’s price cycle, a critical period following a halving event that has historically led to significant price hikes.
As of the time of writing, BTC is trading at $109,570, marking an increase of 3% and 25% over the 24-hour and 30-day periods, respectively.
