The Bitcoin rose from $ 190 billion to about $ 280 billion in recent months, surpassing some big name companies, including banks, by market capitalization.

At the beginning of September this year, Bitcoin’s market capitalization (  BTC  ) was hovering around $ 190 billion, when the price of BTC was hovering around $ 10,000.

In the past two months, however, Bitcoin’s price has gone up from over $ 15,000. As a result, Bitcoin’s market capitalization rose from $ 190 billion to about $ 280 billion. This now makes Bitcoin more valuable than most large companies in the United States.

Bitcoin
The weekly Bitcoin price chart. Source: TradingView.com

Bitcoin is equivalent to the 18th largest US trading company

If Bitcoin’s valuation is compared to that of publicly traded companies in the United States, it would be the 18th largest company.

The 17th largest company in the USA is Home Depot, with a market capitalization of US $ 306 billion. Verizon lags behind with a $ 242 billion valuation, leaving a large gap between the two.

Since Bitcoin’s market capitalization is currently around $ 280 billion, it is larger than all companies in the U.S. out of the top 17.

The companies that Bitcoin has overtaken in recent months include some big names like Netflix, PayPal, BofA, Coca-Cola, Salesforce and Disney.

Main companies in the USA by market capitalization. Source: Dogs of the Dow

Bitcoin still lags behind the three largest U.S. financial institutions under evaluation, namely Visa, Mastercard and JPMorgan. For the highest cryptocurrency to surpass all three, it would need to reach $ 23,000, or a market capitalization of $ 426 billion. 

However, the price of BTC is expected to reach somewhere around $ 120,000 for Bitcoin to reach Apple, the most valuable company in the world, with a market capitalization of $ 2 trillion.

Investors becoming aware of Bitcoin’s asymmetric risk-reward potential

Meanwhile, analysts predict that BTC will recover over the course of 2020 and early 2021, hoping that BTC will enter into price discovery and reach new highs.

In 2017, Bitcoin reached a new record 15 months after reducing the block’s reward in 2016. BTC saw its last halving in May 2020, so the chances of a new peak in mid-2021 remain high based on in historical cycles.

In the long run, cryptocurrency investors and analysts say that the perception of Bitcoin as a store of lasting value would put pressure on its valuation.

Tyler Reynolds, a former student at Google and Morgan Stanley, said the fixed supply of Bitcoin makes it attractive as a protection against government spending. He  wrote  : “As it is currently forming, the next bull run will be led by BTC with the same narrative that the OGs have been saying since 2011: Bitcoin’s tight supply cap makes it a durable SoV as governments devalue their fiat currencies to support unrestricted government spending.

Other notable investors, like Wall Street billionaire hedge fund manager Paul Tudor Jones, called Bitcoin an ideal inflation game.

Bitcoin is particularly attractive to institutions because it can act as a hedge within a diversified portfolio, but it also gives investors exposure to Bitcoin’s asymmetric risk-reward potential.

Bitcoin’s relatively low market capitalization compared to companies like Visa and safe-haven assets like gold indicate that there is significant room for further growth in the next decade.