Bitcoin Surges Past Silver, Becomes The World’s 8th Most Valuable Asset
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Bitcoin Surpasses Silver As A Valuable Asset
Following its meteoric rise in recent days, Bitcoin (BTC) has achieved another milestone. It has surpassed silver and has become the world’s eighth most valuable asset by market capitalization.
With its price skyrocketing to an all-time high of over $72,000 on March 11, Bitcoin’s market capitalization surged to $1.42 trillion, eclipsing silver’s $1.387 trillion valuation. BTC’s price rise can be attributed to multiple factors, especially the recent launch of spot BTC exchange-traded funds (ETFs) in the United States on January 11.
ETFs offered by industry heavyweights such as BlackRock Inc. and Fidelity Investments have attracted a combined net inflow of approximately $9.5 billion. In addition to the influx of institutional funds, the anticipation of the upcoming halving event has further fueled BTC’s price ascent.
The halving event (scheduled for next month) will reduce the rate at which new Bitcoin is generated, decreasing its circulating supply. This scarcity-driven narrative has bolstered investor sentiment. Notably, its market capitalization has already surpassed that of Meta (formerly known as Facebook), which currently stands at $1.2 trillion.
Can BTC Surpass Gold As The Most Valuable Asset?
Based on its impressive rally recently, some enthusiasts believe BTC can surpass gold as the most valuable asset in the world. With gold having a market cap of $14.7 trillion, BTC’s price would need to surge more than tenfold and trade at $720,000 to achieve this feat.
The ongoing rally in Bitcoin’s price has not only propelled its market capitalization but has also led to the creation of approximately 1,500 new “BTC millionaire wallets” daily, according to crypto analytics firm Kaiko Research. While the analytics firm didn’t provide the exact distribution of ownership between individuals and institutions, the influx of wealthy investors highlights the growing allure of Bitcoin as a store of value.
Furthermore, Bitcoin’s growing prominence has caught the attention of traditional financial institutions worldwide. For instance, the London Stock Exchange (LSE) recently approved Ether and Bitcoin exchange-traded notes applications. Similarly, Thailand’s securities regulator has indicated its willingness to allow retail investors access to overseas crypto ETFs, underscoring the global trend toward embracing digital assets.
BTC’s Momentum Wanes
As the price of Bitcoin approaches unprecedented levels, signs of a stalemate are emerging. With Bitcoin hovering around $72,000, earlier investors may choose to liquidate part of their earnings for profits, leading to increased selling pressure. Their actions could create a temporary barrier to further upward momentum, potentially resulting in a period of consolidation.
Technical Indicators’ Warning Signs
Additionally, technical indicators such as the Relative Strength Index (RSI) suggest a divergence that could signal weakening momentum. Furthermore, BTC’s price has significantly deviated from its 50-day and 200-day moving averages, indicating an overextended uptrend. Historically, corrective movements follow such deviations as the asset’s price reverts towards these moving averages.
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