This year, in the early days of September, the market price of Bitcoin (BTC) had been hovering at around $10,000, which meant that its market capitalization was somewhere around $190 billion. However, in the last two months, the market price of the pioneer cryptocurrency has seen a major increase and it has now surpassed the $15,000 threshold. Due to this change in market price, it is a given that the market capitalization of the coin has also changed from $190 billion to approximately $280 billion. With this valuation, Bitcoin has now become more valuable than some of the top companies in the U.S.
If the valuation of Bitcoin is compared to some publicly-listed companies in the United States, the crypto would now be listed as the 18th biggest firm. Home Depot is the 17th largest company in the United States, as it has a market capitalization of around $306 billion. Verizon is listed after, as its valuation is around $242 billion, which means that there is a major gap between the two firms. As Bitcoin’s market capitalization has now reached $280 billion, this makes the crypto larger than all of the companies that are outside the top 17 in the U.S.
Some of the companies that Bitcoin has managed to surpass in the last two months include some prominent names, such as Disney, Salesforce, Coca-Cola, BofA, PayPal, and Netflix. However, Bitcoin still remains behind the country’s three largest financial institutions by valuation, which are Visa, MasterCard, and JPMorgan. If the top cryptocurrency were to surpass all of the three financial firms, it would have to have a market capitalization of $426 billion, which means that the individual market price of Bitcoin would need to be $23,000. However, if the first cryptocurrency wants to catch up to Apple, which is the most valuable company in the world, it has a long way to go.
Apple is currently valued at $2 trillion and Bitcoin’s market price would have to be around $120k in order to get ahead. Meanwhile, analysts expect that Bitcoin will continue to rally throughout 2020 and even in early 2021. Analysts are expecting the crypto to enter price discovery and to reach all-time new highs. 15 months after the block record halving in 2016, Bitcoin had established a record-high in 2017. The latest halving occurred in May 2020, so there is a possibility of a new peak in the middle of 2021, based on Bitcoin’s historical cycles.
In the long term, crypto analysts and investors believe that its valuation would experience an increase due to its perception as a store of value. A former Morgan Stanley and Google alumni, Tyler Reynolds said that BTC’s fixed supply makes it a powerful hedge against government spending. Other prominent investors, such as Paul Tudor Jones, the billionaire Wall Street fund manager referred to the crypto as an ideal inflation play. Bitcoin is highly attractive for institutions because it can be used as a hedge in a diversified portfolio and also provides exposure to investors to its risk-reward potential.