Bitcoin Reaches New Highs, Surpasses Silver in Market Capitalization, and Challenges Gold ETFs
Bitcoin continues its ascent to new records, edging closer to the psychological milestone of $100,000. Earlier today, the leading cryptocurrency set a new All-Time High (ATH), crossing the $97,000 mark and solidifying its position as a dominant global asset.
Bitcoin Becomes the 7th Largest Asset Globally
According to the Alpha Market Report by Bitfinex, Bitcoin has now surpassed silver in market capitalization, thanks to a surge in institutional capital inflows. Analysts reported that Bitcoin's market cap, based on all mined BTC, reached an unprecedented $1.8 trillion, propelling it into the ranks of the most valuable assets worldwide.
As of the report’s publication, Bitcoin was ranked eighth among the world's largest traded assets. However, recent developments have pushed it to seventh place, according to data from Infinite MarketCap. Bitcoin's current market cap stands at $1.851 trillion, surpassing silver’s $1.762 trillion by a notable margin—a significant achievement in a ranking where every billion counts.
Gold remains the dominant leader with a staggering $17.686 trillion market capitalization, far exceeding any other asset. Nevertheless, Bitcoin is quickly closing the gap and establishing itself as a formidable competitor in global financial markets.
Could Bitcoin ETFs Surpass Gold ETFs in AUM Within Two Months?
Following a pre-election sell-off, Bitcoin has demonstrated a remarkable recovery. Rising from $66,880, it has gained over 46% in just nine days, reaching an ATH of $97,862 earlier today. Analysts describe this as the largest price increase for Bitcoin over a nine-day period since January 2021.
This surge is evident not only in Bitcoin’s price but also in its market capitalization, which has grown exponentially. In January 2021, Bitcoin’s market cap was a modest $450 billion, compared to today’s $1.851 trillion.
Analysts attribute this growth to unprecedented capital inflows, describing the recent rally as possibly “one of the largest capital surges into any asset in such a short timeframe.”
Simultaneously, the spotlight is on Bitcoin Spot Exchange-Traded Funds (ETFs). As of November 17, U.S.-based Bitcoin ETFs held assets worth $84 billion, representing approximately 66% of the total assets under management (AUM) of gold-based ETFs. Analysts predict that with the current daily inflow trends, Bitcoin ETFs could surpass gold ETFs in AUM within the next two months—a timeline far shorter than the initial estimates of four to five years.
Notably, BlackRock’s iShares Bitcoin ETF (IBIT) has already achieved this milestone. It surpassed the AUM of BlackRock’s iShares Gold ETF (IAU), marking a historic shift in investment preferences.
A Faster Growth Trajectory Than Gold
Analysts emphasize the speed of Bitcoin’s rise compared to traditional assets like gold. While BlackRock’s gold ETF took nearly 20 years to reach its current AUM, the Bitcoin ETF achieved a similar level in less than 10 months.
Bitcoin Inches Closer to $100,000
Currently, Bitcoin is trading at $97,404, reflecting a 4.42% gain over the past 24 hours, with a weekly increase of 7.67% and a staggering monthly gain of 45.97%. This consistent upward momentum has fueled optimism that Bitcoin will soon reach the highly anticipated $100,000 milestone.
What once seemed an ambitious target now appears within reach, as Bitcoin briefly touched $97,862 earlier today.
Institutional Adoption and Market Optimism
According to Daryll Netscher, founder of Tren Finance, several key factors are driving Bitcoin toward this historic milestone. Among them are increasing institutional adoption, fueled by corporations like MicroStrategy and Metaplanet, and expectations of a more crypto-friendly political environment following Donald Trump’s election victory.
Netscher also noted the significance of this year’s halving event, which coincided with a surge in institutional interest. These developments, he argues, have bolstered market sentiment and reinforced Bitcoin’s position as a preferred investment vehicle.
Beyond $100,000: A Starting Point for Greater Gains?
Netscher believes that reaching $100,000 will likely serve as a launchpad for further growth, rather than a ceiling for Bitcoin’s price. He points to the strengthening foundations of the market, including institutional adoption, the rapid expansion of Bitcoin ETFs, and the development of long-term investment strategies.
With these factors in play, Bitcoin seems well-positioned to continue its momentum, setting the stage for new heights in both price and market influence.