The price has rally has also been linked to increased institutional investments with the recent announcement by Guggenheim Partners in investing $530 million (half a billion dollars) into a Bitcoin Trust.
The recent bull run has also been tied to the 2020 bitcoin halving which took place earlier in the year. Historically, bitcoin halvings have always resulted in bull runs, and some analysts believe the ongoing bull run is as a result of this event.
The new high also officially puts bitcoin at a market cap of over $400 billion – this is just 20x away from the gold market cap.
At this market cap, bitcoin is now more valuable than the following assets:
Bitcoin – $403 billion
Johnson & Johnson – $394 billion
JP Morgan Chase – $367 billion
Procter & Gamble – $340 billion
MasterCard – $328 billion
NVIDIA – $327 billion
Walt Disney – $313 billion
Home Depot – $290 billion
PayPal – $269 billion
Toyota – $253 billion
Bank of America – $248 billion
Bitcoin is also just a few million dollars shy of surpassing Walmart ($411 billion) and Visa ($459 billion) valuations.
Meanwhile, publicly-traded bitcoin mining company stocks have soared following the $20, 000 bitcoin break. The doble digital percentage grains have put all the top 3 companies now individually at over $450 million.
Brian Armstrong, CEO, Coinbase – the biggest and most popular exchange in the United States – has however warned that with price rallies comes increased price volatility and a possible correction.