Bitcoin Surpasses Saudi Aramco in Market Capitalization

Bitcoin (BTC) has become the seventh-largest asset in market capitalization of cryptocurrency, surpassing Saudi Aramco due to a combination of factors. These include the pro-crypto position of U.S. President-elect Donald Trump, favorable regulations for crypto markets, and significant foreign investment. Among them are spot-listed exchange-traded funds (ETFs).

As the crypto space enters its bellwether, Bitcoin’s dominance has peaked at 61.38%, solidifying its position in the market. The value of BTC has also increased, reaching $93,000 on Wednesday. The significant increase in Bitcoin’s market capitalization has elevated its status to unprecedented levels, positioning it as a major player in the global financial arena.

The success of Bitcoin can be partly attributed to the positive energy surrounding the crypto industry after the U.S. presidential election. Donald Trump’s signature campaign has encouraged investors to invest in bitcoin. Additionally, the Republicans’ victory in the House has resulted in a trifecta that will likely lead to more favorable regulations for cryptocurrencies. This combination of Republican leadership in both the house and Senate is expected to create favorable conditions for the crypto industry.

The Bitcoin economy relies heavily on large inflows into U.S. spot-listed ETFs. The crypto bull run has been fueled by an incredible $4.7 billion in net inflows from these funds over the past six trading days, which is more than double the total amount of money invested in BTC ETFs since January. This flow of capital not only boosted the price of Bitcoin, but has also highlighted the increasing interest in crypto (and vice-versa) for investment, with one star witnessing BlackRock’s iShare Bitcoin Trust (IBIT) record trading volume of $5 billion, setting an unprecedented ETF driven growth in institutional investor interest.

As investors diversify their portfolios by incorporating new cryptocurrencies, the demand for BTC is expected to remain high. The current market conditions suggest that ETFs are playing a significant role in driving this demand, as they offer regulated access to the crypto market. This increased demand has also caused Bitcoin’s price to now exceed $93,000, and in the process, Bitcoin is essentially becoming the seventh-largest asset by market capitalization, which shows how the crypto industry (in particular its regulatory composure and liquidity), its massive inflows into ETFs, as well as institutional interest have all helped make Bitcoin what it currently is.

As the crypto market continues to evolve, it will be intriguing to witness how Bitcoin’s supremacy changes the financial landscape. For more insights on the crypto market and its regulations, read “Crypto Market Outlook 2023: What to Expect” on CoinSeeks.com.