Bitcoin’s market capitalization is now about $1.57 trillion, making it the 13th-largest asset by this metric, behind Saudi Aramco and Tesla stock.
The move came after the price fell sharply from around $90,000 to $78,500, a loss of more than 11% over the past 7-day period. The latest price drop comes amid geopolitical tensions, a collapse in the precious metals rally, the nomination of a “hawkish” next Federal Reserve chair and a partial government shutdown.
Bitcoin falling out of the top 10 assets by market capitalization is significant because in recent years it remained on the list as prices remained high. Just on October 7, when prices hit a new all-time high, it was in 7th place. Earlier last year, it even made it to the top five list, surpassing tech giants like Google and Amazon.
By comparison, during October’s record price, bitcoin briefly traded above $126,000 and approached a valuation of $2.5 trillion.
The sale
The recent decline in prices was partly a result of the strength of the US dollar.
Trump’s nomination of Warsh, a veteran of the 2008 financial crisis with Wall Street experience known to favor higher real interest rates and a smaller Fed balance sheet, led to the US dollar’s biggest gain since May.
That led to a pullback in not only bitcoin, but also the precious metals rally, with gold falling 9% in a single trading session to just below $4,900, while silver fell an astonishing 26.3% to $85.3.
Gold remains the largest asset by market capitalization despite its recent move, with a market cap of $34.1 trillion. It is followed by silver’s market value of nearly $4.8 trillion. The largest company by this metric remains NVIDIA at $4.6 trillion, followed by Alphabet at $4.08 trillion.
Ether also took a hit, falling to 56th place and now with a market cap just over $300 billion after the cryptocurrency lost 14.5% of its value in a week. Previously, it was among the top 50 assets by market capitalization, and before the Oct. 10 crash, it was close to the top 25.
The second largest cryptocurrency is now worth less than companies such as Caterpillar, Inditex, Coca-Cola and Cisco.
