After attracting significant capital inflow to rank among the most valuable investment products, Bitcoin has been dislodged from the top ten assets globally based on market capitalization as the flagship cryptocurrency continues to navigate a highly volatile market.
With a market capitalization of $390 billion, Bitcoin now ranks in the 16 spot losing its position to high-profile traditional financial products, data provided by the company Market Cap indicates.
Over the past year, Bitcoin had sustained its status in the top ten group while cementing its position as one of the best-performing assets in the last decade.
Bitcoin’s potential to replace gold
In particular, Gold remains the most valuable asset, with a market capitalization of $11 trillion. Interestingly, Bitcoin has earned comparison to gold, with proponents noting that the crypto will likely take over the precious metal as the presumptive store of value.
Notably, both assets are operating in a high inflation market, but gold has maintained an upper hand.
Elsewhere, Saudi Aramco ranks second with a market cap of about $2.25 trillion, followed by Apple (NASDAQ: AAPL) at $2.1 trillion, while Microsoft Microsoft (NASDAQ: MSFT) is fourth at $1.83 trillion. Alphabet (NASDAQ: GOOGL)ranks fifth with a market cap of $1.38 trillion.
Although both crypto and equities markets are experiencing significant sell-offs, Bitcoin is the most hit of the two asset classes amid heightened inflation and fears of interest rate hikes. In recent months, Bitcoin has been closely correlated with stock indexes, particularly the Nasdaq.
In general, there has been immense choppiness in the market as Bitcoin attempts to sustain gains around the crucial $20,000 support level.
Bitcoin’s price correction escalates
By press time, Bitcoin was trading slightly above $20,500, plunging by over 2% in the last 24 hours. The weekly chart shows the flagship crypto has dropped by 30%.
The correlation between equity and crypto markets has been steadily increasing, although the two assets belong to different classes. Traditional financial markets have also been hit in the wake of the Fed raising interest rates by 0.75 percentage points.
With prices continuing to tumble, there are more predictions that losses might accelerate as Bitcoin looks to bottom out before rallying again.