Bitcoin has taken the financial world by storm once again, reaching unprecedented heights and making significant strides in the rankings of the world’s most valuable assets.
As of recent trading, bitcoin not only broke through to a new all-time high of $89,604 but also officially surpassed silver in market capitalization, becoming the eighth-largest asset globally.
This achievement marks a monumental milestone for the digital asset industry and cements bitcoin’s growing reputation as a viable, valuable asset.
At the recent high of $89,604, bitcoin’s market cap reached $1.78 trillion, outpacing silver’s current valuation of $1.729 trillion. This has positioned bitcoin as a more valuable asset than silver, a traditional store of wealth, for the second time this year.
Experts are eyeing Saudi Aramco as Bitcoin’s next target. Saudi Aramco, the Saudi oil giant, sits in seventh place on the asset rankings with a market valuation of $1.8 trillion, just within bitcoin’s reach if it manages to hit the $91,000 mark.
For some financial analysts, this leap in value is only the beginning of bitcoin’s upward trajectory, with some projecting it could reach $100,000 or higher before the year’s end.
Bitcoin’s recent performance has been nothing short of extraordinary. Just a week prior, it was trading near $68,000. But following the election of Donald Trump as U.S. president, bitcoin surged nearly 30% in value, adding approximately $20,000 to its price within days.
The market appears to be reacting positively to Trump’s perceived pro-Bitcoin stance, with promises to make the United States a global leader in Bitcoin and blockchain technology.
According to Anthony Pompliano, Founder and CEO of Professional Capital Management, institutional investors have also played a key role in bitcoin’s rise. Pompliano stated:
“Bitcoin is the king of the cryptocurrency market, and Wall Street realizes that. They want to put their money with the king.”
This surge in institutional demand is likely to continue, especially with the anticipated approval of more spot Bitcoin ETFs in the United States, which could introduce bitcoin to even more traditional investors.
The Kobessi Letter, a prominent source of capital markets analysis, highlighted this significant Bitcoin achievement, stating, “The fact that gold is still 10 TIMES larger than Bitcoin is incredible. Not only does this show how big gold is, but it also shows how big Bitcoin can be.”
On a similar note, Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted that BlackRock’s iShares Bitcoin Trust (IBIT) experienced a trading volume of $4.5 billion yesterday.
He also mentioned that the wider “Bitcoin Industrial Complex” index, which encompasses U.S.-listed spot Bitcoin ETFs, MicroStrategy, and Coinbase, reached a record trading volume of $38 billion.
With a series of record-breaking achievements, Bitcoin has gained significant momentum, and Alankar Saxena, Co-founder of Mudrex, believes it is on track to surpass the $100,000 threshold by the end of the year.
Saxena said, “Currently, BTC has strong support at $75,600. If BTC maintains the momentum, it could likely have another jump to $90K, making its way to the $100K mark by the end of the year.”
Bitcoin’s journey to surpass silver has not only set a new high but also garnered mainstream attention. Media coverage and positive public sentiment have increased significantly, further fueling demand and attracting new investors.
Rekt Capital, a popular analyst, shared a cautiously optimistic outlook, suggesting that $96,500 could be a realistic target based on historical performance, though a major correction may occur as the price fluctuates.
The momentum has also carried over to the broader digital asset market, with the total market capitalization reaching record $3 trillion. Nevertheless, bitcoin maintains its dominance on the market, making up more than 60% of the total digital assets market value.
This milestone brings the digital currencies market close to the economic output of countries like France, further demonstrating the growing influence of digital assets on the global stage.
The popular Bitcoin Fear & Greed Index has also changed significantly, now resting at 80, showing “extreme greed”. It might suggest that bitcoin’s price might experience a short-term correction soon.
The surge in bitcoin’s value has drawn interest not only from private investors but also from governments worldwide.
For example, El Salvador’s national investment in bitcoin has already yielded a profit of over $119 million, prompting President Nayib Bukele to tweet, “I told you so,” in a celebratory nod to Bitcoin’s success.
In the United States, high-profile figures like Donald Trump and prominent lawmakers are increasingly supporting Bitcoin initiatives. Trump’s recent victory has sparked hope among investors that the U.S. will adopt a more Bitcoin-friendly stance, potentially fostering further growth in the sector.
In addition, the recent launch of Bitcoin ETFs, designed to let investors trade bitcoin within traditional stock markets, has also contributed to bitcoin’s growing appeal.
With silver behind it and Saudi Aramco in its sights, many are wondering if bitcoin could eventually challenge gold’s position as the ultimate store of value. Currently, gold has a market capitalization of roughly $17.5 trillion, nearly ten times that of Bitcoin.
To match or exceed gold’s market value, bitcoin’s price would need to rise to an estimated $1 million per coin. While some experts believe this is achievable within the next decade, others see it as a more distant goal.
Former Twitter CEO Jack Dorsey has voiced his belief that bitcoin could overtake gold by the end of this decade, and other industry leaders share similar long-term optimism.
However, this path to the top won’t be without challenges.
As bitcoin’s price increases, some analysts caution that a market correction is likely. Considering the current market excitement, traders should be cautious about using too much leverage, as sharp downward corrections often follow quick upward surges.
Bitcoin’s recent accomplishments underscore the evolving landscape of finance, where digital assets are increasingly accepted alongside traditional assets like gold and silver.
While Bitcoin’s rise has been meteoric, its journey is far from over.
With global financial institutions and governments beginning to explore the potential of blockchain technology and digital currencies, bitcoin could continue to break records and redefine the investment landscape.
For now, Bitcoin’s supporters are celebrating its place as the eighth most valuable asset in the world.
While its potential to overtake gold remains uncertain, one thing is clear: Bitcoin has established itself as a significant, powerful player in global finance, capturing the attention of investors worldwide.
