Bitcoin Overtakes Meta In Market Cap As Market Recovery Continues
The past week has been eventful in the Bitcoin and crypto market, with three major banks collapsing, triggering a slump in digital asset prices. Fortunately, the market reversed after the Fed’s announcement to support banks with $25 billion.
Current data shows that Bitcoin’s market cap has already surpassed JP Morgan Chase, Exon Mobil, Meta and Visa and is now well behind tech giant Tesla.
Bitcoin Market Capitalization Outperforms Tech Giants
Bitcoin market cap jumped to 11th among other assets by market capitalization. Market value of companies revealed that Bitcoin’s market cap is up 9.7% in the last 24 hours, reaching $471.86 billion at press time.
The number one cryptocurrency has overtaken tech giant Meta, whose market cap currently stands at $469 billion. As of March 13, the market cap of BTC was $433.49 billion, falling short of the Target by $37 billion. But the price of the coin surged, pushing its limit above the Target within 24 hours.
Furthermore, Bitcoin’s market cap surpassing that of Visa makes this the third time it has achieved such a feat in history. Notably, it’s ahead of Visa by over $20 billion, but a far cry from Gold and Apple, which are at $12.59 trillion and $2.380 trillion in market capitalizations, respectively.
But looking at today’s market cap gains and losses, gold lost 0.48% in 24 hours, while Bitcoin shows a 9.14% gain over the same period, far exceeding Apple’s gains of 1 .33%.
What Could Be Driving Bitcoin’s Rally
While the recent banking crisis affected many crypto assets last week, this new week has started with some news fueling the recent price surge. Notably, some factors that have driven the BTC rally include the Fed’s support for the banking sector to cushion the effects of the recent slumps.
On March 12, the Federal Reserve Board announced would provide funding to qualified depository institutions to enable them to meet the needs of depositors. Following the announcement, bitcoin surged by 10% and Ethereum also posted a 15% price gain. Other assets followed suit, increasing trading volume, market cap and prices.
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Second, Coindesk reported that the Interbank Funding Stress Indicator rose to the highest level since the pandemic crash, causing one observer to point to gold and bitcoin as beneficiaries.
As the risk indicator rises, the market expects the Feds to halt their plans for another rate hike. According to MacroMicrodatathe FRA-OIS spread widened to 54.00, the highest since March 2020.
Featured image from Pixabay and chart from Tradingview.com