Bitcoin Market Cap Surpasses Alphabet at 2.385 Trillion

Bitcoin’s market capitalization has been on a steady rise, attracting more investors who view it as a legitimate asset for investment. Despite reaching new all-time highs, investor euphoria has not yet peaked, indicating there is still room for growth. Bitcoin has climbed to the 6th position in the list of the largest assets by market capitalization, with a market cap of $2.385 trillion, surpassing Alphabet at $2.2 trillion.

This sustained growth is a positive sign for Bitcoin, legitimizing it in the eyes of the general public. Institutional investment has also been robust, with Strategy acquiring an additional 4,225 BTC on July 14, bringing its total holdings to 601,550 BTC. Bitcoin spot ETF inflows recorded $1 billion on consecutive days between July 10-11, matching the record set in January 2024 when the spot ETFs were launched.

Despite these positive indicators, there are some warning signs that could explain the recent corrections in Bitcoin’s price. On-chain metrics suggest that while the market appears healthy enough to climb further, there are potential risks. The Coinbase Premium Index, which measures the percentage difference in BTC prices on Coinbase versus Binance, has been positive for the past two months, indicating higher demand from U.S. investors. However, the premium is not as high as it was during previous rallies, suggesting that peak euphoria has not yet been reached.

Crypto analyst Axel Adler noted that bull dominance has been rising, with net long positions on Bitcoin Futures on centralized exchanges rapidly approaching the $100 million-mark. This indicates that buyers could drive the price higher in the short term, despite some unexpected corrections. However, there are two warning signs for Bitcoin traders. The first is the taker buy/sell ratio being skewed extremely in favor of the buyers, with the 7-day moving average of the ratio at 1.03. Historically, this has been met by short-term pullbacks or sideways price action, though it hasn’t often halted a rally. The second warning sign is the flow of stablecoins out of exchanges, which may signal falling buying power in the market.

Overall, investors and traders can remain optimistic, as the rally is not yet complete. However, there may be short-term volatility, which could hurt traders, especially those using leverage. Despite these potential risks, the market appears healthy enough to continue its upward trajectory, with more room for growth as investor euphoria has not yet peaked.