Only four companies in the world exceed the market capitalization of Bitcoin. The pioneering cryptocurrency displaced Facebook and Tesla in market value.
The price of Bitcoin recently exceeded USD 54,000, bringing the market capitalization of the cryptocurrency back to USD 1 trillion. The pioneering cryptocurrency had already gone above that important milestone between March 9th and May 11th.
The local maximum that the market capitalization of BTC reached after exceeding USD1 trillion was USD 1,046 trillion. Right now, Bitcoin is trading at around USD 54,094 while its capitalization is approximately USD 1.019 trillion, according to CoinGecko.
The market capitalization of Bitcoin first exceeded that milestone on February 19th. However, it fell back and then rallied to stay above USD 1 trillion for two months.
This new rally allowed Bitcoin to rise again to eighth place among the most valuable assets in the world. The cryptocurrency exceeded the market capitalization of Facebook, which is USD 941.94 billion. Only Apple, Microsoft, Saudi Aramco, Google, and Amazon are above the value of the creation of Satoshi Nakamoto.
October Looks Auspicious for Bitcoin Price
When the price of Bitcoin exceeded USD 47,000 on October 1st, the rally became more noticeable. In September, the value of BTC registered a decline of more than 7%, while it appreciated by 22.8% in October.
The cryptocurrency would need an additional 25% rally to match the market capitalization of silver. For that reason, its price should rise to USD 67,696. Analysts also raised those hypotheses in mid-April, when the price of Bitcoin exceeded USD 64,000 to hit its all-time high.
However, various predictions suggest that the price of Bitcoin could exceed USD 100,000. In that way, a capitalization above 2 trillion would lead Bitcoin to measure itself on the same terrain as Microsoft and Apple.
The New Market Capitalization of Bitcoin Reaffirms Its Leadership
The dominance of BTC declined as altcoins like ETH, BNB, and ADA rose sharply in price. However, the latter is far from exceeding a market capitalization of USD 1 trillion.
The high market capitalization of Bitcoin has only reaffirmed the strength of the pioneering cryptocurrency. New and different cryptocurrencies have gained popularity, but BTC will remain the leader for much longer.
As Bitcoin has steadily grown since its inception, that change is unlikely. People think of it when they hear about cryptocurrencies and will continue to do so as long as their adoption grows.
Interest in gold as a hedge against inflation has waned due to the growing role of Bitcoin. Its price has remained with modest variations this year, according to JPMorgan. The first cryptocurrency has shown a rebound of 87% this year, while gold has registered a loss of 7.39%.
The importance of the pioneering cryptocurrency in the economy of the world is increasingly evident. The growth of its market capitalization back to above USD 1 trillion is proof of that. Its ability to recover from its worst all-time lows will allow it to reach above USD 60.000 again.
By Alexander Salazar