Bitcoin (BTC) Finishes 2024 as Seventh Largest Global Asset by Market Capitalization

Bitcoin was one of the best-performing assets in 2024, second only to Nvidia, according to new data released by Binance.

Bitcoin (CRYPTO: BTC) ended 2024 as the seventh largest global asset by market capitalisation, according to new research.

The cryptocurrency experienced a rally of over 120% last year, positioning it seventh among the world’s largest assets by market capitalisation, data released by Binance showed.

The crypto market capitalisation peaked at a record $3.91 trillion on December 17, with bitcoin alone reaching a market cap of over $2 trillion.

“This is a remarkable milestone that is even more impressive considering bitcoin’s relative youth – just over a decade old – compared to other more established asset classes,” said James Quinn-Kumar, director of community engagement for Binance Australia.

“Moreover, adoption remains relatively nascent, with bitcoin still in the process of being integrated into traditional investment portfolios.”

Several key developments fuelled bitcoin’s 2024 surge, including the approval of spot bitcoin ETFs in the US, favourable monetary policy shifts and expectations of a more supportive regulatory environment in the US following Donald Trump’s election as president.

The price of bitcoin slipped to just under $90,800 on Monday amid inflation concerns, before bouncing back to above $94,000 on Tuesday.

According to analysts, the January slump is not a surprise and is a common occurrence in post-halving years.

Looking ahead, bitcoin is expected to extend its bullish trend and reach a price range of between $200,000 and $250,000 this year.

Speaking to Super Review sister title InvestorDaily late last year, Magnet Capital co-founder Egor Sidelska highlighted that businesses are increasingly recognising bitcoin as a safeguard against inflation, counterparty risk and liquidity constraints.

Sidelska’s remarks came after data from financial services firm River revealed smaller companies are increasingly making bitcoin a key component of their corporate balance sheets.

Specifically, the data showed that businesses held 3.3% of the total supply of bitcoin as of August 18, which is up 587% since June 2020.

“The value proposition is starting to become very real, and it’s now becoming a lot easier for not only publicly listed companies but even small businesses to hold bitcoin positions on their balance sheet,” said Sidelska.

“You’ll start to see these businesses in the US that basically do that. Because you can either pick a choice of, this year, earn 5% in treasuries, or earn 30% holding it in bitcoin, and because it’s liquid, you can sell whenever you want.”

Also late last year, as the price of bitcoin surged to $105,000, AMP (ASX: AMP) confirmed a modest allocation to the digital currency, acknowledging that the digital coin is “too big to ignore.”

Speaking to InvestorDaily in December, Stuart Eliot, AMP’s head of portfolio management, clarified that after “testing and careful consideration by our investment team and committee,” the company decided to include “a small and risk-controlled position” in digital assets within its Dynamic Asset Allocation program in early 2024.

The bitcoin exposure, which represents around 0.05% of its total superannuation assets under management, recognises the structural changes in the industry, including the launch of exchange-traded funds by leading international investment managers, Eliot noted.

Previously, leading superannuation experts have dismissed cryptocurrency as a viable investment for retirement portfolios, citing its speculative nature and extreme volatility.