Popular cryptocurrency Bitcoin, has surpassed Warren Buffett’s American conglomerate Berkshire Hathaway, to become the 10th largest asset by market cap, after it reached a market cap of $812 billion on December 4.
Bitcoin comes close to Meta which currently sits in the 9th position, with a market cap of $834 billion. Buffet’s Hathaway, currently accounts for a $777 billion market cap. Despite its recent slide of nearly 1.3% over the last five days, Berkshire Hathaway still commands an elevation of 4.7% over the last 30 days and 14.7% YTD.
According to reports, Hathaway’s volatility is nowhere close to that of Bitcoin which has surged 20% over the past month and almost 150% YTD. The cryptocurrency, lately, has been on an upward trajectory, after it recently hit a new all-time high of more than $41,000 on Friday.
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This is the first time that Bitcoin has crossed $40,000 this year, which is reportedly bolstered by anticipation of Bitcoin exchange-traded fund approval and bets on U.S interest rate cuts. With Bitcoin’s market cap surging past $800 billion, the cryptocurrency is now 38% short of its all-time high $69,000 price posted in November 2021.
The rally also reflects investors’ and crypto traders’ decision to quickly move on from crypto’s most recent scandal, which saw Binance CEO Changepeng Zhao, last month, plead guilty to federal money laundering charges.
Also, part of the enthusiasm hinges on expectations that the Securities and Exchange Commission will approve a bitcoin-focused exchange-traded fund or spot ETF. The SEC faces a January 10 deadline to approve applications for such funds.
Speaking on Bitcoin’s recent market cap, Crypto Investor Pompliano took to X (formerly Twitter), to say,
“It is wild that 70% of a $800 billion asset hasn’t traded hands in the last 12 months despite nearly 150% price appreciation. This is unheard of in financial markets”.
Another crypto analyst and writer, behind the X handle @rektcapital, evaluated the Bitcoin price trend and predicted that the BTC price could revisit the $45,000 level before the fourth halving event, scheduled for April 2024.
This is coming after he predicted last month that BTC dominance is still in the pullback phase, noting that it would resume its uptrend with time.
He wrote,
“BTC Dominance is still in the pullback phase and Altcoins are benefiting from that. That said, $BTC Dominance will resume its uptrend with time. Maybe not today, Nor tomorrow, But with time”.
Also reacting to Bitcoin’s recent New high, several analysts and Crypto traders predict that the crypto asset could continue to surge further hitting the $42,000 Mark, as holders refuse to sell.
Notably, analysts at Santiment evaluated the BTC price uptrend and identified a Fear Of Missing Out (FOMO) among market participants. Analysts believe Bitcoin price could revisit $50,000 sooner or later, depending on whether BTC traders engage in profit-taking or demand pushes the asset higher.
It is also worth noting that aside from Bitcoin hitting a new all-time high, it has been an eventful period for altcoins as well, in terms of gains and market caps.
For example, the meme-inspired cryptocurrency Dogecoin (DOGE), soared in value last week in a series of all-time highs. It surpassed previous records, rising a total of 330% between April 9 and 16, with an ATH of $0.48.
Bitcoin hovered around $41,000 on Monday after briefly topping $42,000 earlier in the day for the first time since April 2022, pushing the cryptocurrency closer to its biggest yearly gain since 2020. Industry “optimists” suggest that the recent U.S. crackdown on crypto — including legal actions against the founders of FTX and Binance— has investors feeling more confident. Another potential factor behind Bitcoin’s boom: the first U.S. spot Bitcoin ETFs, which are expected to be approved by the Securities & Exchange Commission early next year. The cryptocurrency’s growth in 2023 has outpaced more traditional assets such as gold. Despite its $4 billion settlement with the Justice Department last month, Binance is still battling the SEC over a lawsuit the regulatory agency brought in June. (LinkedIn News)