Bitcoin Overtakes Silver in Market Cap, What About Gold?

Bitcoin’s market cap hit $1.75 trillion on Monday, surpassing silver to become the world’s eighth-largest asset, according to CoinGecko.

This milestone came as Bitcoin’s price broke $89,000, peaking at $89,560 before a slight retreat.

Driven by increased institutional interest and anticipation around spot Bitcoin exchange-traded funds (ETFs), Bitcoin gained over 9% in a single day, marking the second time it has overtaken silver’s market cap this year.

Meanwhile, silver’s market cap has dropped 6.24% in the past week, down to $1.732 trillion, while Bitcoin’s rise reflects a shift in perception from speculative investment to an asset embraced by traditional investors.

This shift is partly due to the recent U.S. elections, with President Donald Trump’s pro-crypto stance boosting market optimism and regulatory hopes for the cryptocurrency industry.

Bitcoin’s impressive rally has also stimulated activity across other Bitcoin-linked assets. The “Bitcoin Industrial Complex” index, which tracks U.S.-listed Bitcoin ETFs and companies like MicroStrategy and Coinbase, recorded a trading volume of $38 billion on Monday.

Coinbase’s stock closed at $334.24, hitting a three-year high, while MicroStrategy shares rose above $351, an all-time high in nearly 25 years.

Record-Breaking Bitcoin ETF Growth

Spot Bitcoin ETFs have also seen record-breaking growth. The iShares Bitcoin ETF (IBIT) surpassed BlackRock’s gold ETF (IAU) in assets under management (AUM) in under a year, a feat that took the gold fund over two decades to achieve.

Spot Bitcoin ETFs in the U.S. now collectively hold $84 billion, approximately 66% of gold ETFs’ AUM, with Bloomberg analysts predicting Bitcoin ETFs could overtake gold’s AUM within two months.

Last week, Bitcoin ETFs set records for trading volume and inflows. IBIT alone saw $1 billion in a single day on November 7, contributing to a total inflow of $1.3 billion across Bitcoin ETFs.

On the same day, IBIT's trading volume reached $4.1 billion, surpassing stocks like Netflix, Visa, and Berkshire Hathaway.

Strong Institutional Demand Boosts Bitcoin Options Trading

Institutional investors are increasingly active in Bitcoin options trading, betting on further price appreciation as part of a broader market rally.

Open interest in Bitcoin options contracts hit a new high of just under $25 billion on Monday, surpassing a previous peak of $24 billion earlier this month. This surge reflects investors' optimism as Bitcoin gains traction as a hedge against traditional market risks.

Outlook: Bitcoin’s Position Among Global Giants

Bitcoin now ranks below only seven other global assets, including gold and major tech companies like Apple and Microsoft, as well as oil giant Saudi Aramco.

Gold, however, remains ten times larger than Bitcoin by market cap, highlighting Bitcoin’s room for growth as more investors seek alternatives to traditional stores of value.

With strong institutional support and a regulatory climate that appears increasingly favorable, Bitcoin continues to challenge traditional financial assets. With its integration into mainstream finance deepens, its status as a competitive global asset could signal further transformative shifts in investor sentiment.