Bitcoin tops Amazon market cap on ‘Pizza Day’ as price sets new highs

Bitcoin’s market capitalization recently surpassed that of Amazon, reaching $2.205 trillion, a $70 billion increase over Amazon’s valuation. This milestone, coinciding with Bitcoin’s new all-time high above $110,000, has attracted significant attention from both crypto and non-crypto investors, according to Alex Obchakevich of Obchakevich Research. He anticipates this rally will boost confidence and further investment in the crypto market.

This surge is fueled by the growing institutional involvement in the digital asset space. BlackRock, for instance, has become the second-largest Bitcoin holder, surpassing Binance. Hassan Khan, CEO of Ordeez, highlights this as a structural shift, viewing Bitcoin’s evolution from a mere hedge to a potential benchmark currency.

The broader cryptocurrency market also shows positive indicators. The total market cap stands at $3.49 trillion, nearing its all-time high of $3.71 trillion. Bitcoin ETFs experienced significant net inflows of nearly $604 million on May 21, and open interest in crypto derivatives remains high, at $756.16 billion for perpetual swaps and $3.24 billion for futures.

Obchakevich projects Bitcoin’s price to gradually approach $200,000, forecasting a $150,000 mark this year, followed by a potential correction to around $90,000. Khan, while acknowledging short-term profit-taking and macroeconomic uncertainty, emphasizes the growing institutional confidence indicated by substantial ETF inflows and high open interest. He believes the current foundation is stronger than in previous cycles.

May 22nd marks “Bitcoin Pizza Day,” commemorating the first documented Bitcoin transaction in 2010. Ulli Spankowski of Boerse Stuttgart Group notes Bitcoin’s transformation from a speculative risk to a significant asset class, boasting a market capitalization exceeding $2 trillion, ranking it among the world’s top five assets. This significant growth underscores Bitcoin’s increasing prominence in the global financial landscape.