Bitcoin Becomes World's Fifth Largest Asset Amid Record-Breaking Rally
By: Eva Baxter
Bitcoin, the flagship cryptocurrency, has achieved a remarkable milestone by becoming the world's fifth-largest asset by market capitalization, surpassing even the tech giant Amazon. This achievement was marked by Bitcoin's price surge to a new all-time high of $123,165, pushing its market cap to an impressive $2.39 trillion. The cryptocurrency's price rally has been buoyed by consistent buying patterns, particularly from U.S.-listed spot Bitcoin exchange-traded funds (ETFs), which attracted over $2 billion in investments last week alone. This surge indicates increasing interest and acceptance of Bitcoin among institutional investors who are eager for direct exposure to the digital asset.
This significant market development coincides with heightened legislative activity in the United States concerning digital assets. As the U.S. gears up for "Crypto Week," commencing on July 14, lawmakers are set to discuss and potentially pass critical bills like the CLARITY Act and the Anti-CBDC Surveillance State Act. The outcome of these discussions could mark a pivotal moment for regulatory clarity in the crypto industry, potentially leading to a surge in institutional participation.
Notably, the price rise and Bitcoin's newfound status as a major global asset have also resulted in substantial market liquidations, with nearly $730 million liquidated across the crypto markets. Out of this, Bitcoin-related positions accounted for $444 million in liquidations, highlighting the risks and volatility inherent in the cryptocurrency markets. Some traders were significantly affected, as evidenced by on-chain data showing that major positions, such as a $211 million short position, were fully liquidated following the market breakout.
Market analysts view Bitcoin's crossing of the $120,000 mark as not only a testament to its growing acceptance and potential as a store of value but also as a stepping stone for future valuations. Observers, including former Binance CEO Changpeng Zhao and Coin Bureau co-founder Nic Puckrin, foresee Bitcoin potentially setting even higher benchmarks, especially as it continues breaking historical trendlines and gaining institutional traction. Despite these accomplishments, Bitcoin's price needs further growth to surpass its highest euro valuation from January, highlighting differing market dynamics across currency pairs.
