Bitcoin Becomes the Fifth Largest Global Asset

Cryptocurrency

On July 14, the market capitalization of the leading cryptocurrency reached $2.42 trillion. According to CompaniesMarketCap, Amazon’s (NASDAQ:AMZN) capitalization currently stands at around $2.38 trillion.

Katalin Tischhauser, head of research at Sygnum Bank, told Cointelegraph that Bitcoin’s upward trend may be “driven by its perception as a hedging tool.” According to data from analytics platform Farside Investors, on July 10, spot Bitcoin ETFs attracted about $1.17 billion, marking not only the seventh consecutive day of large inflows but also a sign of “long-term confidence” among Bitcoin investors.

Charles Edwards, founder of Capriole Investments, stated that the growing capitalization of Bitcoin strengthens the legitimacy of digital assets and attracts new investors. However, in his opinion, this also increases the risks of a short-term price correction due to potential profit-taking by large holders, which could increase Bitcoin’s volatility in the near term.

Markus Thielen, CEO of 10x Research, suggested that Bitcoin’s growth is driven by investor concerns about a possible financial crisis amid a growing US budget deficit.

Earlier, Japanese investment company Metaplanet announced the purchase of 797 BTC worth $93 million at an average price of $117,451 per coin. By mid-June, Metaplanet held 16,352 BTC, ranking fifth among public companies in terms of Bitcoin reserves.

See also: "ChatGPT predicts when Ethereum will rise to $4000"

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