At the beginning of September this year, Bitcoin (BTC) market cap hovered around $ 190 billion as the BTC price hovered around $ 10,000.
However, over the past two months, the price of Bitcoin has risen from over $ 15,000. With it, Bitcoin’s market cap has increased from $ 190 billion to around $ 280 billion. This now makes Bitcoin more valuable than most major US companies.
Bitcoin is the equivalent of the 18th largest trading company in the US
If the price of Bitcoin is compared to that of publicly listed companies in the US, it would be the equivalent of the 18th largest company.
The 17th largest company in the US is Home Depot with a market cap of $ 306 billion. Verizon lags behind with a $ 242 billion valuation, leaving a big gap.
Since Bitcoin’s market cap is currently around $ 280 billion, it’s larger than all the companies in the US beyond the top 17.
Companies Bitcoin surpassed in recent months include several big names like Netflix, PayPal, BofA, Coca-Cola, Salesforce, and Disney.
Bitcoin remains behind the three largest financial institutions in the US by valuation, Visa, Mastercard, and JPMorgan. For the top cryptocurrency to surpass all three, it will need to hit $ 23,000 or a market cap of $ 426 billion.
However, the price of BTC had to reach around $ 120k for Bitcoin to catch up with Apple, the most valuable company in the world with a market cap of $ 2 trillion.
Investors are aware of Bitcoin’s asymmetric risk-reward potential
Meanwhile, analysts predict BTC to rise throughout 2020, and in early 2021, expect BTC to start exploring prices and reach all-time highs.
In 2017, Bitcoin hit a new 15-month high after the 2016 block reward halved. BTC saw its most recent halving in May 2020, so the chances of hitting new highs in mid-2021 are still high based on historical cycles.
In the long term, crypto investors and analysts argue that the perception of Bitcoin as a long-term store of value drives its valuation.
Tyler Reynolds, a former Google and Morgan Stanley alumni, said Bitcoin’s fixed supply makes it attractive as a hedge against government spending. He wrote:
“As it is currently taking shape, the next bull run will be led by BTC with the story the OGs have been telling since 2011: Bitcoin’s hard supply cap makes it a sustainable SoV as governments devaluing their fiat currency to support unrestricted government spending. ”
Other notable investors, such as Wall Street hedge fund manager Paul Tudor Jones, call Bitcoin an ideal inflation game.
Bitcoin is particularly attractive to institutions as it can act as a hedge in a diversified portfolio but also expose investors to Bitcoin’s asymmetric risk-reward potential.
Bitcoin’s relatively low market cap compared to companies like Visa and safe-haven assets like gold suggest more possibilities for further growth over the next decade.