Bitcoin’s market cap has climbed past $2 trillion, overtaking Amazon and ranking fifth among the world’s top assets.
Bitcoin has recently altered the leaderboard of the world’s most valuable assets. It has officially surpassed Amazon and become the fifth most valuable asset globally. Bitcoin’s market capitalization exceeded Amazon’s $2.039 trillion on May 8 evening, marking a new milestone for digital assets.
Traders were taken aback when the price of Bitcoin surpassed $103,000, as the market experienced subsequent large-scale liquidations. Short sellers were the most severely affected, as their positions were eliminated in 24 hours, totaling more than $1 billion.
The demand for Bitcoin in the mainstream is on the rise
Wall Street’s affection for Bitcoin has recently intensified. Bitcoin’s ascent remains significantly influenced by institutional demand. Traditional investors have gained access to spot ETFs, which have attracted billions of dollars in capital. This wave of purchasing pressure is bolstering the momentum.
Additionally, the regulatory momentum surrounding bitcoin fervor is becoming increasingly robust. Three U.S. states authorized Bitcoin reserve laws within 24 hours. This momentum at the state level has the potential to serve as the next significant factor in the further expansion of institutional adoption. The advancement accelerates the mainstream incorporation of Bitcoin.
The appeal of Bitcoin is also evolving. It is now recognized as a legitimate store of value, rather than merely a speculative transaction. This change is aiding in the firming of its position in international markets.
Multinational corporations increasingly allocate capital to Bitcoin, treating it as gold or blue-chip technology equities. The asset’s performance is now comparable to that of Apple, Microsoft, and Nvidia. These mainstream trends are reflected in the market cap surge of Bitcoin, which is surpassing multinational titans one by one.
Signals of High Leverage: Potential Market Reversal
The market is exhibiting indicators of inflation, despite the bullish sentiment. Traders are balancing on a precarious precipice as they navigate the billions of Bitcoin open interest.
The open interest in Bitcoin futures has increased to $67.4 billion. Sharp corrections are frequently the result of this level of leverage when prices decline. Consequently, traders are intently monitoring critical support levels. Long positions could rapidly unwind if Bitcoin descends below them. This would result in a series of liquidations and volatility.
Nevertheless, Bitcoin’s increasing market capitalization indicates its increasing alignment with macroeconomic trends. It is no longer considered a peripheral asset but occupies a prominent position within the mainstream.
As markets remain apprehensive, Hayes is already placing bets on the next moonshot, with a $150,000 Bitcoin target. His bullish demeanor is indicative of the increasing market confidence within the community.
