Bitcoin surpassed Tesla to become the 10th largest asset by market capitalization after its rally past $30,000. BTC reached a 10-month high of $30,380 after a two-day surge, leading to a market cap of $585.05 billion.
This made it briefly the 10th largest asset in the world, ahead of Tesla’s market cap of $584.7 billion, which ranked it 11th among the top 100 public companies, precious metals, cryptocurrencies, and ETFs.
Market sentiment on Bitcoin remains bullish
Although BTC has consolidated at just over $30,000, market sentiment remains overwhelmingly bullish. BTC still ranks higher than Facebook’s Meta, whose market cap of $556.7 billion places it 12th among the world’s largest assets.
While it isn’t the first time Bitcoin has surpassed established corporations as the largest asset by marketcap, this is the first time public companies may experience significant turmoil in the near future.
Current macroeconomic conditions spell trouble for stocks and other assets. Stock prices would be the first to take a beating if the US market enters stagflation rather than a recession.
Stock prices have been pumped to their all-time highs due to a decade of low-interest rates and a historically unprecedented pandemic stimulus. It will be difficult to maintain those prices through rising interest rates and a potential stagflation, which could lead to massive losses across markets.
As more investors rush to Bitcoin as a way to protect their liquidity, we could see another major rally that pushes Bitcoin past Tesla again and closer to trillion-dollar giants like Amazon and Alphabet.