The past week was eventful in the Bitcoin and crypto market, as three top banks collapsed, triggering a crash in the prices of digital assets. Thankfully, the market saw a reversal following the Fed’s announcement of supporting banks with $25 billion.
Current data shows that the Bitcoin market cap has now outpaced JP Morgan Chase, Exon Mobil, Meta, and Visa and is now closely behind tech giant Tesla.
Bitcoin Market Cap Spikes Above Tech Giants
Bitcoin’s market cap has jumped to 11th among other assets by market capitalization. Companies Market Cap revealed that the Bitcoin market cap surged 9.7% over the last 24 hours, reaching $471.86 billion at press time.
The number one cryptocurrency has overtaken tech giant Meta, whose market cap currently is $469 billion. As of March 13, BTC’s market cap was $433.49 billion, placing it lower than Meta by $37 billion. But the coin’s price surged, pushing its cap above Meta’s within 24 hours.
Also, Bitcoin’s market cap topping Visa’s makes it the third time it has achieved such a feat in history. Notably, it is above Visa by over $20 billion but very far from Gold and Apple, which are at $12.59 trillion and $2.380 trillion market caps, respectively.
But looking at today’s gains and losses in market cap, gold has lost 0.48% in 24 hours, while Bitcoin shows a gain of 9.14% in the same time frame, far exceeding Apple’s gains of 1.33% gains.
What Might Be Pushing Bitcoin Rally
While the recent banking sector crisis affected many crypto assets last week, this new week started with some news fuelling the recent price rally. Notably, some factors that have pushed the BTC rally include the Fed’s support for the banking sector to cushion the effects of the recent crashes.
On March 12, the Federal Reserve Board announced it would provide funding to eligible depository institutions to enable them to meet depositors’ needs. After the announcement, bitcoin spiked by 10%, and Ethereum also recorded a 15% price gain. Other assets followed suit, increasing trading volume, market cap, and prices.
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Secondly, Coindesk reported that the Interbank Funding Stress Indicator surged to the highest level since the pandemic crash, causing an observer to point to gold and bitcoin as the beneficiaries.
As the risk indicator rises, the market expects the Feds to pause its plans for another interest rate hike. According to MacroMicro data, the FRA-OIS spread increased to 54.00, the highest since March 2020.
Featured image from Pixabay and chart from Tradingview.com