Bitcoin’s (BTC) highest weekly close in history, above $106,000, came with additional perks, as the digital currency overtook Alphabet (NASDAQ: GOOGL) to claim the sixth-largest asset by market capitalization globally.
Bitcoin commanded a market cap of $2.038 trillion at press time, edging out Alphabet’s $2.02 trillion.
At the top of the global asset rankings, gold remains the leader with a market cap of $21.70 trillion, followed by technology giants Microsoft ($3.37 trillion), Nvidia ($3.30 trillion), Apple ($3.155 trillion), and Amazon ($2.182 trillion).
In the past 24 hours, Bitcoin’s market cap peaked at $2.11 trillion at one point when the price traded at $106,847 before briefly retracing to settle at $103,146 as of press time, a 0.7% loss over the last 24 hours.
Drivers of Bitcoin’s price rally
Although there was no immediate trigger for the Bitcoin rally that nearly tested $107,000, several factors may have driven the price higher.
For instance, investors seem to be tapping into the asset as a potential safe haven in reaction to Moody’s downgrade of the U.S. sovereign credit rating, alongside easing trade tensions.
At the same time, Bitcoin has also seen increased capital inflows into exchange-traded funds. Data shows that U.S.-listed spot Bitcoin ETFs recorded net inflows of $608 million over the past week.
On the other hand, Google also had an impressive week, with the stock rallying over 5% to close at $167.43 in the last trading session.
Bitcoin and Google structural differences
The two assets, however, operate in different categories. Alphabet, a technology giant, is backed by tangible company assets, including its vast portfolio of services like Google Search, YouTube, and cloud computing.
In contrast, Bitcoin is a decentralized currency that exists solely in the digital realm and trades 24/7 on global exchanges.
This structural difference may have given Bitcoin an edge, as its surge past Alphabet occurred over the weekend, when traditional stock markets were closed.
Bitcoin’s ability to trade around the clock allowed it to capitalize on weekend market momentum, while Alphabet’s stock remained static until markets reopened on Monday.
However, given the volatile nature of cryptocurrencies, Bitcoin’s lead over Google may be short-lived, as digital assets entered Monday facing notable capital outflows.
Featured image via Shutterstock
