Bitcoin’s momentum towards replacing precious metals as the ideal safe haven inches closer with the asset’s market capitalization surpassing 80% of silver.
Data provided by CompaniesMarketCap shows that Bitcoin’s market cap was $1.112 trillion by press time, while silver stood at $1.384 trillion, representing 80.43% of the precious metal.
The milestone comes after bitcoin traded at $61,222 on April 10, marking the highest price level in two weeks. By press time, the asset was trading at $59,873, according to CoinMarketCap.
Amid the weekend price surge, there have been talks of bitcoin facing a constrained supply at a time. The asset is recording wider adoption, especially among institutions.
Diginex sales manager Justin d’Anethan commented on bitcoin’s weekend price movement.
“That changed just yesterday when we pierced through 60K. With miners not selling recently minted coins, on-exchange reserves hitting multi-year lows, and an incessant stream of corporates, funds, large and small investors piling into BTC, we punched through,” said Anethan.
Race towards ideal store of value
With bitcoin rising and eating into silver’s market cap, investors continue to analyze the assets’ long-term sustainability and if it will eventually become the go-to store of value. However, both assets are considered excellent portfolio diversifiers.
By hitting over three-quarters of silver’s market capitalization, it is a tremendous achievement for bitcoin that has been around for about 12 years. On the other hand, silver has been in existence for ages. This indicates that bitcoin might eventually surpass silver soon and set focus on gold.
The surge in bitcoin value is mainly due to a recent $1.5 billion investment by electric vehicle manufacturer Tesla (NASDAQ: TSLA). Simultaneously, the entry of other traditional institutions like PayPal (NASDAQ: PYPL) and Visa (NYSE: V) has contributed to the growth, with proponents hoping the asset will no longer be associated with the high volatility narrative.