Bitcoin’s sharp decline recently has pushed it out of the list of the world’s ten largest assets by market capitalization, reflecting the fluctuating nature of its value amid significant price movements in recent months.
Currently hovering around $83,000 per coin, Bitcoin’s (BTC) market capitalization has fallen to approximately $1.65 trillion, which ranks it 11th globally, just behind Saudi Aramco and Taiwan Semiconductor Manufacturing Co. (TSMC), according to market trackers.
Meanwhile, gold has surged to become the leading asset following a record-breaking rally, solidifying its position at the top of the asset rankings. This surge is paralleled by a notable increase in gold futures, as illustrated by recent data from cryptocurrency exchange MEXC.
Bitcoin’s market capitalization reached near $2.5 trillion in October when prices fluctuated above $126,000. The latest downturn was propelled by approximately $1.6 billion in liquidations as prices rapidly dropped from nearly $90,000 to below $82,000.
Concerns have reignited around the possibility that Bitcoin may be entering a prolonged bear market, emphasizing its struggle against other asset classes.
Economic Context Challenges Bitcoin’s Durability
The recent sell-off of Bitcoin adds another layer of uncertainty in the digital asset landscape, coinciding with talks of appointing crypto-friendly Kevin Warsh as the new Federal Reserve Chair, replacing Jerome Powell.
President Trump has confirmed Warsh’s nomination, which still requires Senate approval before he can take over the role from Powell when his term ends in May.
Despite seemingly favorable conditions, such as a weaker US dollar, Bitcoin has significantly lagged behind both risk assets like equities and traditional safe havens like gold.
Recent analyses indicate that various factors, such as expanded mandates from exchange-traded funds and increased inflows into Bitcoin and Ether (ETH), could catalyze a market rebound. Experts suggest that these inflows, not just short-term price fluctuations, are essential for generating an overall positive impact on the broader cryptocurrency market.
