Bitcoin rally flips Tesla’s market cap

Bitcoin has taken center stage as its valuation surges to new heights, marking the crypt’s attempt to break free from the consolidation phase that has persisted in recent months. This surge has propelled Bitcoin ahead of numerous players in traditional sectors.

Data obtained by Finbold shows that Bitcoin commanded a market capitalisation of $677.23 bln, up to October 26, surpassing selected traditional sector stocks.

The flagship cryptocurrency has outpaced electric vehicle manufacturer Tesla, which has a market cap of $675.26 bln, and pharmaceutical firm Eli Lilly at $556.72 bln.

Furthermore, Bitcoin exceeds healthcare firm UnitedHealth, which has a capitalization of $491.13 bln, finance giant Visa, which possesses $489 bln, and semiconductor manufacturer TSMC with a market cap of $454.53 bln.

Other traditional finance stocks trailing Bitcoin include Novo Nordisk ($439.25 bln), Walmart ($438.07 bln), Exxon Mobil ($430.33 bln), and JPMorgan Chase ($405.89 bln).

In addition, the valuation of Bitcoin surged by 16% from October 20 to October 26, 2023, with its price trading slightly below the $35,000 mark. On October 20, the asset was valued at $29,682; on October 26, it had risen to $34,534.

Drivers behind Bitcoin surge

The Finbold research highlighted possible drivers behind Bitcoin’s recent surge in valuation.

“For long considered highly volatile, Bitcoin has surged mainly driven by growing interest in the possible spot exchange-traded fund (ETF) rollout.

“The recent excitement stems from including BlackRock’s Bitcoin ETF in a list managed by the Depository Trust and Clearing Corp, a Nasdaq-affiliated clearinghouse for stocks and ETFs. The ETF speculation coincides with rising geopolitical tensions that have partly cast attention to scarce assets such as Bitcoin.”

Despite Bitcoin’s performance, traditional markets offer stability, institutional support, and clear regulations. In contrast, Bitcoin provides a digital and decentralised alternative favoured by a growing segment of investors.