Bitcoin nears $90,000 mark, market cap now higher than silver
What's the story
Bitcoin's latest rally has pushed it beyond silver, making it the eighth biggest asset in the world.
The top cryptocurrency is currently priced at some $86,900 per coin, giving it a market cap of $1.72 trillion.
This is higher than silver's $1.71 trillion market cap but still far behind gold's estimated $17.52 trillion worth.
In just the last 24 hours, Bitcoin has gained 5.6% in price.
Market impact
Bitcoin's rally boosts overall crypto market value
The recent Bitcoin price surge has added a lot of value to the cryptocurrency market, taking it to a record high of an estimated $3.1 trillion.
The rapid growth has mostly been attributed to investor optimism after Donald Trump's US presidential election victory.
Analysts believe that if the trend continues, Bitcoin could even cross the $100,000 mark before year-end.
Political influence
Trump's pro-Bitcoin stance fuels market optimism
Trump's return to the White House has been characterized by a strong pro-Bitcoin stance, which has fueled investor optimism.
During his campaign, he championed Bitcoin as a symbol of financial independence and an alternative to traditional banking.
This approach is expected to continue into his presidency, with plans for a strategic Bitcoin reserve and incentives for domestic mining.
Following Trump's election victory last week, investors have shown increased interest in spot Bitcoin ETFs (exchange-traded funds).
Investment trend
Record inflows into US Bitcoin ETFs post-Trump's victory
Post-Trump's election win, US Bitcoin ETFs have witnessed record inflows. On Thursday alone, these funds attracted an unprecedented $1.3 billion.
BlackRock, the world's largest asset manager, led the trend with over $1 billion invested in its Bitcoin ETF. Fidelity's FBTC also saw significant activity with an inflow of $190 million.
This investment trend shows a growing institutional interest in cryptocurrencies under the new administration.
Crypto performance
Bitcoin's surge impacts other cryptocurrencies
Bitcoin's record highs have sent ripples across the entire cryptocurrency market.
Ether, Ethereum's native token, was worth over $3,200 as of Tuesday morning, while Dogecoin jumped 30% in the last 24 hours.
However, not all digital assets have joined the upward trend with Solana and Cardano witnessing a dip.
Despite the fluctuations, the global crypto market has gained overall value.