Summary:
Bitcoin surpasses silver to become the eighth-largest asset globally.
Recent surge pushes Bitcoin's market cap to $1.8 trillion.
Profit-taking has led to $640 million in net outflows.
Retail activity spikes with transactions under $100,000 at a three-year high.
Bitcoin ETFs expected to surpass gold ETFs within two months.
Last week's price surge positioned Bitcoin as the eighth-largest asset globally, surpassing silver.
Bitcoin's unprecedented surge past $90,000 has solidified its status as a mainstream financial asset, according to the latest Bitfinex Alpha report. BTC reached a new all-time high of $93,318, elevating its market capitalization to $1.8 trillion, eclipsing silver's total market value.
This milestone places Bitcoin firmly as the eighth-largest traded asset worldwide. The recent rally, a 39.5% gain from its pre-election dip to $66,880, marks Bitcoin's most significant price surge since January 2021, showcasing the need for substantially more capital due to its expanded market size.
However, profit-taking has moderated the rally, with $640 million in net outflows recorded over the last two trading days, leading to a consolidation phase akin to traditional financial markets where investors secure gains after sharp upward movements.
Retail activity has surged as well, with Bitcoin transactions under $100,000 hitting a three-year high, as noted by CryptoQuant CEO Ki Young Ju. Yet, retail interest remains below the levels witnessed during the 2021 bull run, indicating that many retail investors are still on the sidelines.
Heavy ETF Inflows
The report also emphasizes record-breaking capital inflows into US spot Bitcoin ETFs, which now hold over 1 million BTC. Analysts predict that Bitcoin ETFs will surpass the market cap of gold ETFs within two months, significantly ahead of initial expert projections.
BlackRock’s iShares Bitcoin ETF (IBIT) exemplifies this momentum, recently overtaking the AUM of the firm’s iShares Gold ETF (IAU), achieving this milestone in under 10 months, a feat that took IAU two decades.
As Bitcoin continues to establish itself as a mainstream asset, its trajectory illustrates growing investor confidence in digital assets as a vital component of the global financial ecosystem.
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