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Bitcoin overtakes silver in market capitalization, solidifying its status as a recognized financial asset.
Bitcoin’s (BTC) remarkable rise beyond $90,000 has strengthened its increasing correlation with conventional financial assets, according to the most recent “Bitfinex Alpha” report.
BTC achieved a new all-time high of $93,318, elevating its market capitalization to $1.8 trillion and surpassing the total market value of silver. This milestone positions Bitcoin as the eighth-largest traded asset worldwide.
The ascent past the $90,000 mark signifies a 39.5% increase from its pre-election low of $66,880. The nine-day surge represents Bitcoin’s most significant price increase since January 2021, necessitating considerably more capital due to its enlarged market size. At that time, Bitcoin’s market cap was around $450 billion — merely a fraction of its current worth.
Profit-taking has moderated the rally, with $640 million in net outflows noted over the past two trading days. This has resulted in a consolidation phase, reflecting trends observed in traditional financial markets as investors lock in profits following sharp increases.
In addition, retail activity has also surged, with Bitcoin transactions below $100,000 reaching a three-year peak, as reported by CryptoQuant CEO Ki Young Ju.
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Nonetheless, these figures remain significantly lower than the retail enthusiasm witnessed during the 2021 bull market, when Coinbase’s iOS app reached the top position on the Apple store. Likewise, Google searches are still considerably below the levels recorded in the previous cycle, indicating that most retail participants are currently on the sidelines.
Heavy ETF inflows
The report further emphasized unprecedented capital inflows into US spot Bitcoin ETFs, which now possess over 1 million BTC. Analysts predict that Bitcoin ETFs will exceed the market cap of gold ETFs within two months — five years ahead of earlier forecasts made by experts.
BlackRock’s iShares Bitcoin ETF (IBIT) illustrates this trend, recently surpassing the assets under management of the firm’s iShares Gold ETF (IAU). Notably, IBIT accomplished this feat in less than 10 months, a milestone that took IAU two decades to achieve.
As Bitcoin solidifies its status as a mainstream asset, its trajectory reflects increasing investor confidence in digital assets as an essential component of the global financial landscape.
The post Bitcoin surpasses Silver’s market cap, establishing itself as mainstream financial asset appeared first on CryptoSlate.
