Bitcoin is officially a $2.5 trillion asset, the 7th most valuable asset in the world

Bitcoin is officially a $2.5 trillion asset, the 7th most valuable asset in the world

Bitcoin (BTC) has reached a new milestone, becoming the 7th most valuable asset in the world, with a market capitalization of $2.5 trillion. This significant achievement is a testament to the cryptocurrency's growing influence and acceptance in the global financial landscape. The surge in Bitcoin's value comes amidst a backdrop of geopolitical uncertainty, including the ongoing U.S. government shutdown.

Over the past 24 hours, Bitcoin's price has gained 1.75%, reaching approximately $122,300, according to Coinbase data . This increase brings Bitcoin within 1% of its all-time high of $124,290 set on August 14. The broader cryptocurrency market has also seen a substantial rise, with the overall market capitalization increasing by over 3% to exceed $4.3 trillion.

The U.S. government shutdown, which entered its third day on Friday, has been a significant factor in Bitcoin's recent performance. Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, noted that Bitcoin's relationship with U.S. government risks has been evident in its trading patterns. He predicts that Bitcoin could rally as high as $135,000, deviating from its historical pattern of price weakness following a halving event .

The surge in Bitcoin's value has been accompanied by a strong bullish sentiment among investors. Retail sentiment on Stocktwits around Bitcoin has surged to 'extremely bullish' territory, reflecting a high level of chatter and optimism . This sentiment has been bolstered by the strong inflows into US spot Bitcoin ETFs, which reached their best day since mid-September, reflecting investor appetite for hedge assets like Bitcoin and gold .

Bitcoin's performance has also been supported by a broader market trend, with Ethereum and other major altcoins advancing significantly. Ethereum, for example, has gained 2.12% to reach $4,483, while other coins like XRP, BNB, and Solana have also seen notable increases . This capital rotation into established altcoins has further strengthened the overall cryptocurrency market.

The U.S. government shutdown has also created an environment of heightened macroeconomic uncertainty, which has driven investors towards safe-haven assets. The lack of crucial economic data due to the shutdown has created midterm uncertainty, but it has not dampened the overall bullish sentiment in the market .

Bitcoin's recent performance underscores its role as a potential safe-haven asset in times of economic uncertainty. As the U.S. government shutdown continues, investors are likely to remain vigilant, watching for further developments that could impact the cryptocurrency market.