Bitcoin Plummets Below Tesla and Meta

▲ Bitcoin (BTC) crash/ChatGPT-generated image ©

Bitcoin (BTC), the leading digital asset, is facing a double whammy of institutional fund outflows and geopolitical crises, causing it to drop out of the top 10 global asset market capitalization rankings and sending shockwaves through the financial market. BTC, which has recorded a double-digit decline this year alone, has been pushed down to 13th place in global asset rankings due to the fierce rally of tech stocks and safe-haven precious metals. As a result, the status of digital gold, which once stood shoulder to shoulder with the world's top assets, is now significantly shaken.

According to the cryptocurrency media outlet Finbold on May 28 (local time), data compiled by asset data platform CompaniesMarketCap shows that BTC's market capitalization has decreased to $1.457 trillion, pushing it out of the top 10 global assets. This is lower than Tesla's $1.640 trillion and Meta's $1.590 trillion, which have recently seen a formidable surge. Currently, BTC is trading around $72,753, and the market is pointing to the $72,000 to $73,000 range as the next key support level. If it falls by another 10%, causing $147 billion to evaporate from its market capitalization, its ranking could drop to 14th.

While BTC falters, the precious metals market, a traditional safe-haven asset, is staging a historic rally and dominating. Gold, which hit an all-time high of $5,600 per ounce in January and is currently consolidating around $4,451, firmly maintains its position as the number one global asset by market capitalization. Silver also surged to $120 per ounce and is currently holding at around $73, recording a total market capitalization of $4.15 trillion, making it the fifth largest asset in the world. Some market experts are offering optimistic forecasts that gold prices could surge to $7,000 in the future, predicting further rallies for precious metals.

Semiconductors and large tech stocks, at the heart of the artificial intelligence (AI) craze, have also outpaced the cryptocurrency market by an overwhelming margin. Nvidia maintains its status as the world's second most valuable asset after gold, with a market capitalization of $5.16 trillion, and CEO Jensen Huang expressed strong confidence that this figure will grow further in the coming years. Following Nvidia, Alphabet ranked 3rd with $4.62 trillion, and Apple ranked 4th with $4.56 trillion, demonstrating big tech companies' firm control over the top ranks of global assets.

Consequently, this shift in rankings is evaluated as a clear indicator of capital movement amidst a general adjustment in risk assets. While BTC, which has fallen by approximately 17% since the beginning of the year, struggles to defend its key support levels, global capital has rapidly moved to AI infrastructure backed by strong performance and precious metals, a powerful inflation hedge. The media diagnosed that as long as macroeconomic uncertainty persists, the market capitalization gap between digital assets and traditional assets could be maintained or widen further for some time.

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