As Bitcoin continues to show strength, current market data has shown that it has not only flipped the market cap of the EVM manufacturers but that of many popular traditional sector stocks.
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The Bitcoin Rally
Bitcoin in the early hours of Nov. 9 rallied up to $37k adding $28 billion to its market cap.
Bitcoin now occupies the 11th spot among the world’s largest assets by market cap. It now surpasses a few popular conventional stocks in terms of market capitalization, indicating a potentially significant shift in the financial market.
Bitcoin Flips Marketcaps
According to data from coinmarketcap bitcoin currently sits at a market cap of $717.23 billion surpassing some major traditional sector stocks.
An example is the market cap of the electric vehicle manufacturer Tesla, which currently has a market cap of $706.06 billion, and pharmaceutical firm Eli Lilly at $587.74 billion.
Bitcoin’s market cap also exceeds that of Visa whose market cap sits at $504.61 billion and Mastercard with a $365.45 billion market cap. The digital asset giant has also surpassed Walmart at $442.22 billion and banking giant JPMorgan Chase, at $418.38 billion.
What Is Fueling The Surge?
Three major factors that have been considered as the major driving force for Bitcoin are the recent events about Bitcoin ETFs, The upcoming Bitcoin halving, and the geopolitical tensions that have rocked the world recently.
November 9 marks the beginning of the ETF approval phase for Bitcoin. A few analysts have predicted November to be the start of something big for ETFs. However, others speculate that there may be no approval till 2024
The ETF approval speculation was further ignited when BlackRock’s Bitcoin ETF was included in a list managed by the Depository Trust and Clearing Corp, a Nasdaq-affiliated clearinghouse for stocks and ETFs.
Although this does not guarantee approval by the SEC Blackrock is the world’s largest asset manager and the approval of a Blackrock Bitcoin ETF would confer a new level of credibility on cryptocurrency.
Geopolitical tensions have also contributed to the rising demand for scarce assets across borders. Both traditionally scarce assets like gold and a few other cryptocurrencies like Bitcoin offer an alternative for investors who wish to preserve their wealth.
There is also a growing uncertainty that is caused by rising inflation and an increase in interest rates. Thus a growing number of individuals are now seeking refuge in the ‘Digital Gold’ as a hedge against these ever-growing uncertainties.