Analysis

Bitcoin Is Back Above $50K: Here’s Three Things To Know About BTC This Week

Bitcoin is back above $50,000! Here are 3 key things to know about the cryptocurrency this week: its race to beat Meta in market cap

Jim Haastrup

Key Insights

  • Bitcoin reached $50,000 this week, its highest price since November 2021.
  • Bitcoin's market cap is nearing $1 trillion, surpassing companies like Berkshire Hathaway and is on track to beat Meta.
  • Bitcoin ETFs are also rapidly accumulating BTC, influencing its price positively.
  • Other metrics like Open Interest, Long-short ratio and liquidations show a great deal of bullish strength, as far as the market goes

Throughout the last week, the Bitcoin bulls have shown that they are very much active, and have pushed BTC all the way up from $43,000 to $50,000.

Bitcoin currently sits at the highest it has been since November 2021, and the rest of the crypto market is reacting positively.

As expected, this bullishness puts BTC in a very uncertain situation.

Will the bullishness continue? Will we see a decline? How high up from here can BTC go?

While we await answers to these questions, here are three things about BTC to keep in mind this week.

Bitcoin Is Set to Beat Meta in Market Cap

BTC, being above the $50,000 mark, means that it now has a market cap of $982,798,295—very close to the $1 trillion mark.

This means that BTC is now beating the likes of Berkshire Hathaway, Tesla and Visa, and is on its way to beating Zuckerberg's Meta in terms of market cap.

Bitcoins ranking | Source: CompaniesMarketCap

At the time of writing, the Meta market cap is around $1.195 trillion and if BTC were to hit $66,000 per coin, it would have beaten both Meta and Silver in terms of market cap.

Beyond that, the cryptocurrency still has to battle some of the world's most powerful corporations, like Saudi Aramco, Microsoft, and Apple.

These companies have market caps ranging between $2.1 trillion to $2.7 trillion, and BTC will need to trade above $100,000 per coin (the 2024 price target) to challenge them directly.

Overall, the final target for BTC is gold, the most valuable asset class in the world, with a market cap of $13.65 trillion.

Interestingly, BTC will have to trade at around $650,000 per coin to beat gold, and analysts do not see this happening in this cycle.

Bitcoin ETFS Are Raking in New BTC, 10X Faster Than Miners Can Mint

In recent months, Bitcoin ETFs have exploded in popularity and inflows from investors.

These financial vehicles now hold billions of dollars worth of BTC, with some of them including Blackrock's BITC (with over $1.5 billion in assets under management ), Fidelity's FBTC (with over $600 million), Ark 21Shares' ABTC (the third largest in the US with over $300 million), and finally, Invesco-Galaxy's GBTC (with over $200 million).

Recently, in a tweet, BTC investor and influencer, Anthony Pompliano commented that ETFs, "have sucked up 5% of the entire tradable supply of Bitcoin in 30 days."

Wall Street loves Bitcoin

In essence, Pompliano says that the spot Bitcoin ETFs are "buying up 12.5x more BTC per day than the network can produce."

Bitcoin Liquidations, Open Interest Have Spiked

According to data from CoinGlass, the number of short liquidatons on BTC over the last day, hit $60.56 million, the highest it has ever been since the $89 million on 8 January 2024.

Bitcoin's liquidations

Moreover, the open interest rate on BTC now sits at around $21.74 billion, which is the highest level this metric has been at since 12 November 2021.

Bitcoin's open interest rates

The cryptocurrency's long-short ratio also sits at 1.01, with the bulls (50.32%) outnumbering the bears (49.68%)

Bitcoin's long-short ratio

All of the above factors put a lot of bullish prospects on BTC's price, indicating that the cryptocurrency may indeed continue further upwards from here.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.