Bitcoin’s market capitalization is now around $1.57 trillion, making it the 13th largest asset by this metric, behind Saudi Aramco stock and Tesla.
The move came after its price fell sharply from around $90,000 to $78,500, a loss of over 11% over the past 7-day period. The recent price decline comes amid geopolitical tensions, a break in the precious metals rally, the appointment of a next “hawkish” Federal Reserve chair, and a partial government shutdown.
Bitcoin’s drop from the top 10 assets by market capitalization is significant because, in recent years, it remained on the list while prices remained elevated. Only on October 7, when prices reached a new all-time high, was it in seventh place. Early last year, it even made the top five list, surpassing tech giants like Google and Amazon.
For comparison, during October’s record price, bitcoin briefly traded above $126,000 and approached a valuation of $2.5 trillion.
The liquidation
The recent price decline was partly a result of the strength of the US dollar.
Trump’s nomination of Warsh, a veteran of the 2008 financial crisis with experience on Wall Street and known for favoring higher real interest rates and a smaller Federal Reserve balance sheet, sparked the US dollar’s biggest rally since May.
That led to a pullback not only in bitcoin but also in the precious metals rally, with gold falling 9% in a single trading session to just under $4,900, while silver fell a staggering 26.3% to $85.3.
Gold remains the largest asset by market capitalization despite its recent decline, with a market capitalization of $34.1 trillion. This is followed by the market capitalization of silver, close to $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 capitalization just above $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 October 10 crash, it was close to the top 25.
The second largest cryptocurrency is now worth less than companies like Caterpillar, Inditex, Coca-Cola and Cisco.
