Bitcoin Surges 100% Past Canada’s GDP, Amazon’s Market Cap

Bitcoin's value has surged past Canada’s GDP and Amazon’s market capitalization, marking a significant milestone in the cryptocurrency's history. This surge has positioned Bitcoin as the fifth most valuable single asset globally, surpassing major tech giants and traditional financial assets. The rally, which saw Bitcoin hit a new all-time high of $123,211, has sparked debates about its potential to rival gold and other top assets.

The recent surge in Bitcoin's value can be attributed to several factors. One key driver is the strong demand for Bitcoin and other cryptoassets via exchange-traded products (ETPs). Global net inflows into cryptoasset ETPs reached nearly $4 billion, the highest weekly net inflows in 2025. This significant demand-supply imbalance has contributed to the price increase, as the number of newly mined bitcoins is outpaced by the demand from ETPs.

Another factor contributing to the rally is the macroeconomic environment. The signing of the "One Big Beautiful Bill" Act (OBBB) by President Donald Trump has raised the US debt ceiling by $5 trillion, including cuts to federal aid, an increase in long-term debt, and tax reductions for wealthy individuals. This has raised concerns about the sustainability of US fiscal debt and has led to a shift in investor sentiment towards decentralized assets like Bitcoin, which have no counterparty and credit risk.

The rally has also been fueled by significant short futures liquidations, which have amplified price rises as short traders need to buy back the underlying bitcoins to neutralize their short positions. Additionally, the low number of Google search queries for the term 'bitcoin' suggests a relatively low level of retail interest, indicating that the rally is not driven by retail participation but rather by institutional investors.

The macroeconomic backdrop for Bitcoin and other cryptoassets remains bullish, with increased fiscal spending in the US and looser Fed monetary policy. This has created a favorable environment for Bitcoin, which is seen as a hedge against inflation and a store of value in times of economic uncertainty.

The recent rally has also led to an increase in altcoin outperformance vis-à-vis Bitcoin, with 75% of tracked altcoins managing to outperform Bitcoin on a weekly basis. This signals an increasing risk appetite within cryptoasset markets and underscores the renewed outperformance in altcoins vis-à-vis Bitcoin.

In conclusion, Bitcoin's surge past Canada’s GDP and Amazon’s market capitalization is a testament to its growing acceptance as a valuable asset. The rally has been driven by strong demand for Bitcoin via ETPs, a favorable macroeconomic environment, and significant short futures liquidations. The prospects for increased fiscal spending in the US and looser Fed monetary policy create a very bullish macro backdrop for Bitcoin and other cryptoassets, amid a global money supply that has already reached new all-time highs and continues to accelerate.