Bitcoin Hits $110,000 Mark, Market Cap Surpasses $2.1 Trillion

On May 21, Bitcoin (BTC) reached a new all-time high (ATH) near the $110,000 mark, driven by significant buying pressure. This surge elevated Bitcoin’s market capitalization to over $2.1 trillion, positioning it as the fifth most valuable asset globally. This achievement surpassed major firms like Amazon and Google, highlighting Bitcoin's growing influence in the global financial landscape.

Bitcoin’s market capitalization now stands at approximately $2.182 trillion, trailing only behind tech giants Apple, NVIDIA, and Microsoft, as well as gold, which holds a capitalization of over $22 trillion. This milestone underscores the cryptocurrency's transformation from a niche digital asset to a major player in the global economy.

Gracy Chen, Managing Director of Bitget, expressed optimism about Bitcoin’s future during a roundtable discussion. She highlighted the increasing institutional adoption, evolving regulations, and new real-world applications as key factors driving Bitcoin’s growth. Chen predicted that Bitcoin will surpass gold in terms of market capitalization, potentially within the next few years, suggesting a two to threefold increase in price.

Historically, Bitcoin has been seen as “digital gold,” initially perceived as an anti-risk asset. However, its role has evolved, becoming more correlated with traditional financial markets, especially with the anticipated approval of spot Bitcoin ETFs in 2024. Chen noted that while Bitcoin is still considered digital gold, it has also become a risky asset, more closely aligned with the US stock market.

Positive regulatory developments in the US have further bolstered investor sentiment, fueling expectations for price discovery phases for BTC. Antoni Trenchev, co-founder of the digital asset trading platform Nexo, commented on the current market landscape. He noted that with January’s high surpassed and a 50 percent upside from April’s lows achieved, Bitcoin enters a phase of blue sky territory. This phase is characterized by institutional momentum and a favorable US regulatory environment.

Trenchev emphasized that the market is in the fourth year of Bitcoin’s price cycle, traditionally seen as a pivotal period following a halving event. Historically, this phase has led to significant price increases. Despite macro uncertainty and the threat of further volatility, Trenchev concluded that a target of $150,000 in 2025 is still very much on the cards.