Bitcoin’s market capitalization ascent makes it larger than nearly every publicly traded bank in the world. If Bitcoin were a company, it’d be a top 10 component in the S&P 500.
As of late Jan. 18, Bitcoin’s market value was flirting with $683 billion, putting the cryptocurrency in position to eclipse some other well-known assets by that metric.
“Bitcoin’s market cap of $666 billion is almost half of Silver’s at 48.61%, which was at $1.37 trillion as of January 17, 2021. Compared to the FTSE 100, Bitcoin’s market cap is 32.33% of the index’s $2.06 trillion,” according to TradingPlatforms.com.
Issues such as scalability must be resolved before cryptos gain wider acceptance. Regulatory hurdles also remain, including central banks in some countries outright banning transactions denominated in cryptocurrencies.
Bitcoin’s Market Capitalization
“The digital asset’s market capitalization stands at 17.52% of the NIKKEI’s capitalization of $3.08 trillion. Bitcoin also trails Gold, accounting for 6.28% of the precious metal’s $10.60 trillion market cap. Compared to the S&P 500, Bitcoin falls behind, accounting for 2.10% of the index’s $31.66 trillion market cap,” notes TradingPlatforms.com.
To be sure, the notorious cryptocurrency has still climbed a tremendous amount from last year, but the steep drop underscores the sharp rise, and how dangerous the volatility is for traders and investors, who collectively lost roughly $200 billion.
“Bitcoin’s market capitalization has surged from 2020 Q3 as the asset hit a new all-time high of $41,000 on January 8. The gains have seen the asset continue to close in on some of the traditional indices and assets. This follows a time that saw major market indexes globally hit record highs despite the economic turmoil from the Covid-19 pandemic. During the period, Bitcoin has shown less volatility. Overall, Bitcoin is still a relatively smaller asset class that is increasingly uncorrelated to traditional asset classes,” adds TradingPlatforms. “Some cryptocurrency proponents believe that Bitcoin is on the way to replace traditional assets and indices as the safe haven for investment. Compared to Gold, Silver Bitcoin has been making gains while the two assets appear to have stalled. For instance, at some time during the pandemic, Bitcoin and Gold made some gains. However, gold stalled at the end of July, with Bitcoin continuing with its resurgence into 2021.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.