Key Takeaways
- Bitcoin now ranks as the world’s fifth-largest asset by market capitalization, overtaking Amazon.
- Institutional inflows into U.S. spot bitcoin ETFs and anticipated U.S. legislative action are fueling the rally.
- Analysts predict further upside for bitcoin, with potential resistance if ETF demand or policy support wanes.
Bitcoin has become the fifth-largest asset globally by market capitalization, surpassing Amazon, Silver, and Google, with its value now trailing only Gold, NVIDIA, Microsoft, and Apple.
At the time of publication, bitcoin’s market cap stands at $2.407 trillion, propelled by a surge in price to $122,500.
This historic milestone comes amid ongoing institutional inflows and heightened legislative activity in the United States.
Mix of reasons
Vincent Liu, chief investment officer at Kronos Research, commented on the drivers of the rally:
“This rally isn’t just momentum, it’s infrastructure-driven. The rally is being driven by a powerful convergence: institutional inflows through ETFs, policy momentum in Washington, and macro liquidity that’s finally turning favorable.”
ETF flows
U.S. spot bitcoin exchange-traded funds have seen 13 consecutive trading days of inflows, with more than $16 billion entering the funds in recent weeks.
This influx is paired with anticipation for legislative developments during the so-called “Crypto Week” in Washington, where lawmakers are set to discuss proposals like the CLARITY and GENIUS Acts.
Liu noted that further upside is possible if these trends persist and the Federal Reserve signals an interest rate cut.
Eugene Cheung of OSL exchange echoed the potential for bitcoin to reach $130,000–$150,000 by the end of 2025.
However, Liu warned that a slowdown in ETF demand or renewed policy uncertainty could disrupt the current uptrend. While bitcoin leads the rally, other digital assets have also posted gains, with Ethereum, XRP, and Solana all rising over the past day.
