Bitcoin is continuing a very strong rally that began at the end of 2020, just briefly touching the $36,000 threshold before pulling back.
As Bitcoin continues to set new all-time high prices, it is continuing to ascend the ranks of the largest assets by market capitalization.
According to AssetDash, Bitcoin overtook the Taiwan Semiconductor Company to be the ninth-largest asset in the world. This development comes hot on the heels of last week’s news that the leading digital asset surpassed Warren Buffet’s Berkshire Hathaway in total market cap.
Bitcoin Moves Up the Ranks
With Bitcoin’s latest rally, it’s quickly catching up to two other massive global corporations — Alibaba Group Holdings and Tesla. Both are run by famous entrepreneurs Jack Ma and Elon Musk respectively. If Bitcoin continues on its current trajectory, it should quickly pass these two companies in market cap.
At the time of press, Bitcoin is only $10 billion shy of overtaking Alibaba Group Holdings as the eighth largest asset by market cap. This is growth that would only represent 2.6 percent of its current valuation.
If it usurps Alibaba, Bitcoin would need to add another $36 billion in market cap to overtake Tesla, a move that would require slightly over 7 percent additional growth.
Growing Institutional Interest
Many are speculating on whether this bull run will follow in the footsteps of 2017 — or correct as severely as it did in the years that followed.
When it comes to Bitcoin specifically, one of the main differences between the two bull runs is the amount of institutional interest. In 2017, the price was mostly driven by retail investors. With this current bull run, companies are buying billions of dollars worth.
Companies and hedge funds that purchase Bitcoin are doing so for a variety of reasons, but primarily it seems to be a way to preserve their cash reserves and act as a hedge against inflation. MicroStrategy and CEO Michael Saylor have been one of the first to set this precedent, investing over $1 billion of MicroStrategy’s reserve assets into Bitcoin.