Bitcoin has made a significant milestone by surpassing the market cap of silver, solidifying its status as a mainstream financial asset. The latest “Bitfinex Alpha” report revealed that Bitcoin reached a new all-time high of $93,318, with a market capitalization of $1.8 trillion. This achievement has positioned Bitcoin as the eighth-largest traded asset globally.
The recent rally that propelled Bitcoin past the $90,000 mark represents a 39.5% gain from its dip to $66,880 before the election. This surge is the largest price increase since January 2021, requiring a substantial amount of capital due to the expanded market size of Bitcoin. Back in January 2021, Bitcoin’s market cap was only around $450 billion, showing significant growth over the past few years.
Despite the impressive rally, profit-taking has occurred, with $640 million in net outflows recorded over the last two trading days. This has led to a consolidation phase, a common pattern in traditional financial markets where investors secure gains after sharp upward movements.
Retail activity has also witnessed a surge, with Bitcoin transactions under $100,000 hitting a three-year high. However, the level of retail interest is still below the peak seen during the 2021 bull run when Coinbase’s iOS app ranked at the top of the Apple store. Google searches related to Bitcoin also remain below the levels seen in the previous cycle, indicating that the majority of retail investors are currently on the sidelines.
The report also highlighted the significant capital inflows into US spot Bitcoin ETFs, which now hold over 1 million BTC. Analysts predict that Bitcoin ETFs will surpass the market cap of gold ETFs within two months, a timeline much earlier than initially projected by experts. BlackRock’s iShares Bitcoin ETF (IBIT) has shown remarkable momentum by surpassing the assets under management (AUM) of the firm’s iShares Gold ETF (IAU) in less than 10 months, a milestone that took IAU two decades to achieve.
As Bitcoin continues to establish itself as a mainstream asset, investor confidence in digital assets as an essential component of the global financial ecosystem is growing. This latest development underscores the increasing alignment of Bitcoin with traditional financial markets, showcasing its importance in the modern financial landscape.