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Breaking $100K: Bitcoin Draws Parallels to Global Economic Indicators

Published 05/12/2024, 09:05
Updated 05/12/2024, 11:15
Breaking $100K: Bitcoin Draws Parallels to Global Economic Indicators
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Coin Edition -

  • Bitcoin claimed a market cap of $2 trillion after breaking above $100K.
  • BTC is now the 10th largest currency and the 12th largest country by value.
  • Predictions of Bitcoin hitting the $1 million in the long term have emerged.

Bitcoin’s climb past $100,000 has brought on a new set of new crypto analyses, with observers drawing parallels to global economic benchmarks, asset classes, and historical financial events. These discussions seek to contextualize Bitcoin’s rise and assess its potential trajectory.

For instance, Bitcoin’s market capitalization, now nearing $2 trillion, is being compared to leading global corporations like Apple and Microsoft. Its volatility has been likened to commodities such as gold and oil, with analysts debating its potential as a hedge against inflation. Additionally, some argue Bitcoin could disrupt traditional banking systems, highlighting its role in reshaping global finance.

Bitcoin’s Growth by the Numbers

As Bitcoin climbed to an all-time high of $103,900, it surpassed the critical $100,000 psychological barrier, firmly establishing itself among the world’s most significant financial assets. Its current market capitalization places it as the 10th largest global currency and the 12th largest country by value, according to recent analyses.

CoinMarketCap data at the time of writing shows Bitcoin’s trading price at $102,770, a 7.15% gain in the past 24 hours and a 50.36% increase over the past month. Trading volumes also spiked 56.40% to $107 billion, reflecting heightened investor demand.

Bitcoin’s Journey: Then and Now

Back in 2019, Bitcoin was ranked the 33rd largest currency globally and the 43rd largest country by value. It is clear that the digital asset has come a long way since then.

And now, Bitcoin trails only currencies Chinese yuan, U.S. dollar, euro, Japanese yen, and British pound in market cap.

Read also: Bitcoin Exchange Balances Hit 2024 Lows, Signals Bullish Trend

Driving this growth are factors such as El Salvador’s adoption of Bitcoin as legal tender and the efforts of companies like MicroStrategy and Hut 8, which hold Bitcoin as a strategic reserve asset. In the U.S., 10 states have implemented legislation recognizing Bitcoin as part of their reserve systems, further solidifying its importance.

What’s Next (LON:NXT) for Bitcoin?

Bitcoin’s recognition as a strategic reserve asset by several U.S. states, coupled with the introduction of the Bitcoin Act of 2024 by Senator Cynthia Lummis, can prove bullish add-ons for Bitcoin.

Analysts, including Fundstrat co-founder Tom Lee, predict Bitcoin could eventually reach the $1 million mark, highlighting its growing role in the global financial system.

In a November 29 interview with Wealthion, Lee predicted Bitcoin to reach $250,000 within the next 12 months, a plausible target considering BTC already broke above $100,000.

The post Breaking $100K: Bitcoin Draws Parallels to Global Economic Indicators appeared first on Coin Edition.

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