Bitcoin's market cap reaches new all-time high against gold

Bitcoin’s market cap has reached a new all-time high against gold's market cap, now at 14%, according to data from Galaxy Research.

This milestone comes as total assets under management (AUM) for bitcoin exchange-traded funds (ETFs) have climbed to $129 billion, surpassing gold ETFs, which hold $128 billion, according to K33 Research . "Gold, with a 20-year head start, has been flipped by bitcoin," K33 Head of Research Vetle Lunde posted .

Bloomberg senior ETF Eric Balchunas analyst noted the impressive momentum. "Bitcoin ETFs have reshaped institutional interest in crypto, achieving near parity with gold ETFs in under a year since spot bitcoin ETFs launched in January," Balchunas said.

Bitcon vs. gold market capitalization. Image: Galaxy Research.

Bitcoin's market cap surges past $2 trillion

Bitcoin’s market capitalization has surpassed $2 trillion, ranking it seventh among global assets by market cap, according to data from CompaniesMarketCap.com. This puts bitcoin ahead of Saudi Aramco and silver in the rankings, further solidifying its position as a major asset class.

For context, gold retains a dominant lead with a market cap exceeding $17 trillion — greater than the combined market value of tech companies such as Apple, Microsoft, Nvidia, Amazon and Alphabet.

The broader cryptocurrency market cap stands at $3.72 trillion, with bitcoin maintaining dominance at 54.5% and Ethereum at 12%, according to CoinGecko data .

Bitcoin is now ranked seventh in terms of top assets by market cap. Images: Companies marketcap.com.

Fed's hawkish tone prompts crypto market caution

The Federal Reserve delivered a 25 basis point rate cut yesterday, as widely expected. However, Chair Jerome Powell’s accompanying remarks struck a hawkish tone, scaling back projections for 2025 rate cuts from four to just two. This unexpected shift unsettled markets, even as persistent signs of sticky inflation have lingered in recent months. "Higher rates are a headwind for risk assets, and Powell’s comments triggered a sharp sell-off," BitwiseInvest CIO Matt Hougan said.

Crypto markets experienced a sharp pullback, intensified by the liquidation of over $660 million in leveraged long positions within 24 hours, according to Coinglass data . However, Hougan noted that such reactions are typical in crypto markets. "Leverage is part of the crypto landscape, and when prices dip sharply, leveraged positions get stopped out, exacerbating the move," he added. "But this pullback is just a hiccup."

Hougan then emphasized that crypto markets have built their own internal momentum and are less tied to Federal Reserve policies than in previous cycles. "The Fed is less relevant to crypto than it has been in the past and crypto now has internal momentum, and nothing about today’s announcement interrupts the mega-trends," he said.

He highlighted four key catalysts driving bitcoin's growth: the pro-crypto shift in Washington policy, which has created a more favorable regulatory environment; rising institutional adoption and increasing inflows into bitcoin ETFs; Bitcoin purchases by both governments and major corporations, signaling broader acceptance as a reserve asset; and significant technological breakthroughs in the programmable blockchain space, which continue to expand bitcoin's utility and long-term potential.

BRN analyst Valentin Fournier echoed this optimism, highlighting ongoing positive catalysts for the digital asset market. He pointed to growing corporate adoption of Michael Saylor’s bitcoin strategy, where companies are integrating Bitcoin into their treasury reserves, as well as emerging discussions about bitcoin potentially becoming part of national reserves.

"Looking ahead, we expect heightened volatility as markets adjust to elevated expectations for Donald Trump’s potential presidency,” Fournier said. "Despite short-term turbulence, the long-term outlook remains overwhelmingly bullish, and heavy exposure to bitcoin and ether remains the most compelling strategy for navigating this cycle.”