With a total valuation of over $390 billion, BTC is in the 16th position. High-profile conventional financial products have since overtaken the cryptocurrency.
>> Try the #1 AI Trading Robot - Click Here <<
Can Bitcoin Still Replace Gold?
Currently, Gold tops as the number one asset. It has a market cap of over $11 trillion. Market participants have compared assets with several rooting for Bitcoin to overtake Gold.
Unfortunately, the digital currency is miles away from the precious metal in terms of valuation. Notably, Bitcoin and Gold are operating in a market plagued with inflation. Although Bitcoin’s price has dropped, good has the upper hand.
Furthermore, in second place is Saudi Aramco, with a valuation of over $2.25 trillion. Third on the list is Apple, with a market cap of $2.1 trillion, and then Microsoft, with $1.83 trillion. Google is in the fifth position with a valuation of $1.38 trillion.
Despite the recent fall in BTC’s market capitalization, it still leads to common assets like JP Morgan (NYSE: JPM), Mastercard (NYSE: MA), and Nvidia (NASDAQ: NVDA).
Although both equities and crypto face serious sell orders, BTC is more affected. This is due to increased rate inflation and fear of increased interest rates. In the past months, the flagship currency has traded side by side with the stock index, NASDAQ.
Generally, the market has been filled with so much uncertainty. Buyers are talking to ensure that Bitcoin does not fall below the $20k support level.
Bitcoin’s Price Continues To Drop
As of the time of writing, Bitcoin is trading at about $19,099. It has been down by over 9.4% in the past 24 hours. Also, according to the weekly chart, the famous currency has dipped by more than 30%.
Meanwhile, some analysts predict that the flagship currency will soon be testing the $15k zone. Recently, the correlation between the crypto and equity market has greatly increased.
However, both assets are not in the same class. Earlier this week, the Fed raised the interest rate by 0.75%. Both the conventional financial market and the crypto market reacted to the news.
With the ongoing price drops, many believe that more losses are coming. It appears Bitcoin would have to hit rock bottom before it rallies again.