Bitcoin’s (BTC) rapid ascent continues, marking yet another milestone in its remarkable financial journey. The leading cryptocurrency has now become the seventh-largest asset globally, boasting a market capitalization exceeding $1.8 trillion.
This meteoric rise positions Bitcoin at exactly half the market value of Nvidia (NASDAQ: NVDA), the world’s largest public company by market capitalization of $3.60 trillion. Notably, Bitcoin has recently overtaken giants like Saudi Aramco, the largest oil company in the world, and silver.
Bitcoin’s surge fueled by election outcomes and institutional inflows
Since Election Day, Bitcoin has experienced unprecedented inflows, with investors pouring into the market at record levels. Interestingly, the cryptocurrency also outpaced the combined market caps of Tesla (NASDAQ: TSLA) and Netflix (NASDAQ: NFLX). In the past week alone, Bitcoin has seen $145 billion of inflows, excluding today’s data.
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“The pro-crypto policies anticipated from the recent election results are expected to drive further crypto adoption,” noted analysts at The Kobeissi Letter in a recent thread.
Indeed, Bitcoin appears to be one of the biggest winners of the 2024 election. Overall, 50 out of 58 pro-crypto candidates won their races for the US Congress, changing the political landscape. This political shift suggests that cryptocurrency is likely to see more favorable regulatory policies and laws in the near future.
Moreover, Bitcoin exchange-traded funds (ETFs) have played a significant role in this rally. Bitcoin ETFs, along with crypto-related stocks like Coinbase (NASDAQ: COIN) and MicroStrategy (NASDAQ: MSTR), collectively saw a staggering $38 billion in trading volume on Monday alone. This level of activity marks a new high, with no previous day in history coming close to such volumes.
“Bitcoin ETFs, Coinbase, and MicroStrategy saw a whopping $38 billion in trading volume on Monday alone. No day in history has even come remotely close to such high trading volumes,” observed The Kobeissi Letter.
In particular, BlackRock’s (NYSE: BLK) iShares Bitcoin trust IBIT surpassed gold’s ETF in volume this week, as Finbold reported.
Bitcoin (BTC) and Nvidia (NVDA) stock price analysis
The recent price action indicates that both technical factors and market sentiment are fueling Bitcoin’s ascent. Breaking above the $73,800 resistance on November 6 triggered a bullish technical setup, propelling the price to new heights.
As of this writing, BTC trades at $93,208, slightly below its recently made new all-time high.
At the current pace, some analysts, including The Kobeissi Letter, suggest that Bitcoin could reach $100,000 this week. This optimism is echoed by many in the crypto community, who believe that the combination of technical catalysts and favorable regulatory prospects is creating the perfect storm for Bitcoin’s growth to $100,000 – with some of these analyses covered on Finbold.
Interestingly, while Bitcoin’s market cap is now exactly half that of Nvidia’s, the tech giant itself has been on an upward trajectory. Nvidia’s stock has reached all-time highs, closing at $147.63 on November 11, with analysts revising their NVDA targets. Morgan Stanley recently increased Nvidia’s price target from $150 to $160, maintaining an “Overweight” rating.
“While Nvidia’s gross margins are expected to show gains in the upcoming quarter, the eagerly anticipated ramp of Blackwell—Nvidia’s next-gen AI chip—could introduce some margin uncertainties,” noted Joseph Moore, Morgan Stanley’s seasoned tech analyst.
Closing thoughts
Even with this remarkable growth, Bitcoin remains dwarfed by gold, which is still ten times larger in market value. However, the gap is beginning to close. Eric Balchunas, senior ETF analyst for Bloomberg, observed that the recent inflows into Bitcoin and Ethereum ETFs suggest a shifting perception on Wall Street, as Finbold reported earlier this morning.
“[The market is] trending in the right direction. Sunny days ahead, although still several country miles behind BTC ETFs,” Balchunas remarked, referring to the increased investor interest in Ethereum ETFs.
As Bitcoin approaches the $2 trillion mark, market watchers speculate whether it could eventually surpass all public companies in market value. Whether this momentum will continue remains to be seen, but one thing is clear: Bitcoin’s role in the global financial landscape is becoming increasingly significant.
