Cryptocurrency Bitcoin has climbed up the ranks to become the world’s eighth most valuable asset by market capitalisation, surpassing silver, CoinDesk reported.

The world’s largest cryptocurrency reached an all-time high valuation of over $72,000 during the morning hours of US trading on March 11, leading to a market cap of $1.42 trillion. This has now placed it ahead of silver (valued at $1.387 trillion), according to CompaniesMarketCap.

Outperforming Meta and Aiming Higher

During its historic bull run, Bitcoin had already exceeded the market cap of Meta, now valued at $1.2 trillion. The next target in Bitcoin’s ascent is Alphabet, the parent company of Google, currently valued just below $1.7 trillion, the CoinDesk report said.

It noted that Bitcoin enthusiasts are setting their sights on gold, the world’s most valuable asset with a market cap of $14.7 trillion. Achieving this milestone would require Bitcoin to increase more than tenfold, surpassing $720,000 per token.

Record High Amidst Capital Influx and Supply Reduction

Bitcoin has continued its unprecedented surge, driven by a substantial influx of capital into crypto products and the imminent reduction in the digital token’s supply growth, as per a Bloomberg report.

It achieved an all-time peak of nearly $72,881 on March 11 and maintained a robust position at $72,165 as of 11:25 a.m. in Singapore on March 12. A recent report by CoinShares International revealed a record $2.7 billion inflow into crypto assets last week, with a significant portion directed towards Bitcoin. Both the token and a gauge of the largest 100 coins have seen a remarkable 70 percent increase in value this year.

Key Drivers of Momentum

The success of spot Bitcoin exchange-traded funds (ETFs) launched in the United States on January 11 has been a pivotal factor in driving recent momentum, the Bloomberg report added. ETFs from BlackRock Inc. and Fidelity Investments, with a combined net inflow of approximately $9.5 billion, have played a crucial role.

In the UK, the London Stock Exchange (LSE) announced its acceptance of applications for Bitcoin and Ether exchange-traded notes, while Thailand’s securities regulator signalled the opening of overseas crypto ETFs to retail buyers.

“We are witnessing institutional adoption in the US,” stated Ophelia Snyder, co-founder, and president of 21Shares, on Bloomberg Television. She added, “It’s quite early still. Not all institutions, not all wirehouses, have access to it.”

Rise in “Millionaire Wallets”

Bitcoin’s rally is creating around 1,500 new “millionaire wallets” daily, as reported by crypto analytics firm Kaiko Research. However, the exact ownership distribution between individuals and companies is challenging to determine based on blockchain data. This daily creation rate is lower than during the 2021 bull run when over 4,000 wallets per day reached the million-dollar mark.

Next month, Bitcoin is set to undergo a significant event known as the halving, which involves cutting the supply of new Bitcoin in half. The combination of ETF demand, limited supply, and expectations of looser monetary policy contributes to bullish sentiment in the crypto market, overshadowing memories of the challenging 2022 bear market.

(With inputs from Bloomberg)