Bitcoin’s market capitalization has reached a new record compared to gold, with a 14% market share, according to Galaxy Research. This is supported by the rapid growth of Bitcoin ETFs, whose total assets under management (AUM) now stand at 129 billion USD, more than that of gold ETFs.
The impressive rise marks a milestone for BTC, which has nearly caught up with gold ETFs’ 20-year lead in just one year. “Bitcoin ETFs have completely reversed institutional interest in crypto,” said Bloomberg analyst Eric Balchunas.
Bitcoin rises to seventh place in market capitalization
With a market cap of over 2 trillion USD, BTC is now ranked seventh in the list of the world’s largest assets, ahead of Saudi Aramco and silver. This highlights the growing acceptance of BTC as a major asset class. However, gold maintains a leading position with a market cap of more than 17 trillion USD, highlighting Bitcoin’s growth potential.
The broader crypto market currently has a total value of 3.72 trillion USD, with Bitcoin holding a dominance of 54.5%, followed by Ethereum at 12%.
Volatility caused by the Federal Reserve
Although the Federal Reserve cut interest rates by 25 basis points yesterday , Chairman Jerome Powell’s “hawkish” tone caused volatility in the markets. Powell reduced expectations for further rate cuts in 2025, leading to a sell-off in risky assets, including crypto. However, according to Bitwise CIO Matt Hougan, this volatility is “just a small jolt” as internal drivers continue to bolster crypto markets.
Hougan pointed to four catalysts supporting BTC’s growth: a pro-crypto policy shift in Washington, rising institutional adoption and ETF inflows, BTC purchases by governments and corporations, and technological advances in blockchain.
Positive long-term prospects
Analyst Valentin Fournier remains optimistic about the long term, seeing growth in corporate adoption of BTC strategies and discussions about BTC as a national reserve. “Despite short-term turbulence, the long-term outlook remains overwhelmingly bullish,” emphasized Fournier. Bitcoin’s position as the dominant digital asset seems unassailable, with the focus on continued adoption and growing acceptance in institutional and government circles.
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