Bitcoin’s (BTC) recent surge in buying pressure has attracted a significant inflow of capital amidst the chaos in the banking system, giving the asset an upward momentum and elevating its rank higher among investment products.
In this line, Bitcoin’s market cap has reached $524.14 billion, making it the 11th highest asset globally by market capitalization, data retrieved from Company Market Cap on March 24 indicates.
This places Bitcoin just one spot away from reentering the top ten category of the most valuable assets, currently occupied by electric vehicle manufacturer Tesla (NASDAQ: TSLA), with a market cap of $602.09 billion.
The latest capital inflow has also propelled the maiden cryptocurrency past traditional finance giants such as payment platform Visa (NYSE: V), which now ranks 15th with a market capitalization of $460.16 billion, and banking giant JPMorgan Chase (NYSE: JPM), which lies in the 21st spot with a capitalization of $365.24 billion.
Bitcoin rallies amid banking crisis
A Finbold report on March 21 highlighted Bitcoin’s performance in the wake of the banking sector crisis, indicating that five leading U.S. banks lost a cumulative market capitalization of $108.92 billion in 2023, while Bitcoin added $219.86 billion to its market cap during the same period.
The crisis in the banking sector was further underscored by the collapse of high-profile lenders such as Silvergate Bank, Silicon Valley Bank, and Signature Bank, while Swiss banking giant Credit Suisse was sold to UBS after running into trouble.
Bitcoin’s growth amidst the traditional finance crisis has led proponents to believe that there is a paradigm shift that could bolster its status as a safe-haven asset.
Initially attributed to the possibility of a Federal Reserve slowdown on interest rate hikes, Bitcoin has sustained gains despite the institution hiking rates for the ninth consecutive time.
Commenting on the situation, Bitcoin skeptic and CEO of Euro Pacific Asset Management, Peter Schiff, believes the ongoing situation is comparable to the 2008 crisis and described it as a ‘sequel’ that is going to be worse.
BTC price analysis
Currently, Bitcoin is trading at $28,170 with weekly gains of 6% and targeting new levels after hitting new multimonth highs.
Following the recent price movement, Bitcoin is aiming to reclaim the $30,000, a position that could usher in a possible trajectory toward $40,000, with investors keenly monitoring how the asset will react to the interest rate hikes.
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