Banking Crisis Drives Bitcoin to Surpass Visa and JPMorgan in Market Cap
Bitcoin’s (BTC) recent surge in buying pressure has attracted a significant inflow of capital amid the turmoil in the banking system, giving the asset an upward momentum and lifting its ranking higher among investment products.
Along these lines, Bitcoin’s market capitalization has reached $524.14 billion, making it the 11th highest asset globally by market capitalization, data sourced from The company’s market value on March 24 indicates.
This puts Bitcoin just one spot away from entering the top ten category of most valuable assets, currently occupied by electric car maker Tesla (NASDAQ: TSLA ), with a market capitalization of $602.09 billion.
The latest infusion of capital has also propelled the first cryptocurrency past traditional financial giants such as payments platform Visa (NYSE: V ), which is now in 15th place with a market capitalization of $460.16 billion, and banking giant JPMorgan Chase (NYSE: JPM ), which is in 21st place with a capitalization of 365.24 billion dollars.
Bitcoin rally amid banking crisis
A Finbold report on March 21 highlighted Bitcoin’s performance in the wake of the banking sector crisis, indicating that five leading US banks lost a cumulative market value of $108.92 billion in 2023, while Bitcoin increased its market value by $219.86 billion over the same period.
The crisis in the banking sector was further underlined by the collapse of high-profile lenders such as Silvergate Bank, Silicon Valley Bank and Signature Bank, while Swiss banking giant Credit Suisse was sold to UBS after running into trouble.
Bitcoin’s growth amid the traditional financial crisis has led supporters to believe it is a paradigm shift that could strengthen its status as a safe haven.
Initially attributed to the possibility of a Federal Reserve slowdown in rate hikes, Bitcoin has maintained gains despite the institution raising interest rates for the ninth time in a row.
Commenting on the situation, Bitcoin skeptic and CEO of Euro Pacific Asset Management, Peter Schiff, believes that the current situation is comparable to the 2008 crisis and described it as a “sequel” that is going to get worse.
BTC Price Analysis
Bitcoin is currently trading at $28,170 with weekly gains of 6% and is aiming for new levels after hitting new multi-month highs.
Following the latest price move, Bitcoin is aiming to regain $30,000, a position that could usher in a possible path towards $40,000, with investors closely monitoring how the asset will react to interest rate hikes.
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