At $2T m-cap, Bitcoin now more valuable than Google, Meta
What's the story
Bitcoin has hit a major milestone, crossing a market capitalization of $2 trillion for the first time ever. At the time of writing, Bitcoin was trading at around $105,000 per coin with a 24-hour trading volume of over $50 billion on major exchanges like Binance and Coinbase. With its market cap at $2.1 trillion, the crypto token is now more valuable than leading tech companies such as Google ($2.02 trillion), Meta ($1.6 trillion) and Tesla ($1.1 trillion).
Market impact
Bitcoin's rise boosts market dominance and liquidity
The surge in Bitcoin's market cap has greatly increased its dominance in the digital asset sector. This development has drawn a lot of institutional interest and increased liquidity across the broader market. Now, traders are advised to keep an eye on key resistance levels and liquidity flows, as this increased market cap could mean increased volatility and more opportunities for both short-term and long-term traders.
Investor sentiment
Bitcoin's role as a hedge amid economic uncertainties
Amid persistent inflation concerns and volatile stock markets, Bitcoin has become a go-to hedge for institutional and retail investors alike. This was further evidenced by the performance of crypto-related stocks like MicroStrategy (MSTR) and Coinbase Global (COIN), which rose by 3.2% and 2.8%, respectively on Saturday. These developments underscore an increasing cross-market correlation between cryptocurrencies and traditional equities. Analysts believe that interest rate expectations and stock market volatility could drive future movements in the crypto market.