Bitcoin Held By Public Companies Now On Par With Past Market Cap

Tony "The Bull" Severino

1 year ago

3 mins read

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The Bitcoin market cap is hovering at roughly $211 billion currently, but four years earlier, it was a meager $6.8 billion. This figure matches the BTC supply public companies now hold alone, and it could provide the “writing on the wall” regarding what to expect in terms of the asset’s future growth.

Bitcoin Matures Into Corporate Reserve Asset, Domino-Effect Could Drive New Bull Run

The crypto market is evolving: decentralized finance is far more sustainable than the ICO boom, and Bitcoin is maturing into a respected asset alongside gold, stocks, and more.

What was once a retail-driven asset class, is now being strongly considered by hedge funds, gold bugs, institutions, and recently, a trend of publicly-traded companies adding BTC to their corporate treasury reserves.

Total BTC in USD Value Held In Publicly Traded Company Treasuries | Source: BitcoinTreasuries.org

The total amount of Bitcoin in USD currently held by fifteen companies is valued at $6.8 billion and climbing. $50 million was just added by the Jack Dorsey-led Square, Inc. in what seems to be a domino-effect kicked off by MicroStrategy.

The number is especially significant, because just four years earlier the Bitcoin total market cap was just $6.8 billion, before the bull run that put crypto on the map.

One crypto analyst that noticed the comparative amount of capital then and now, the “writing is on the wall” in terms of what happens next.

Market Cap Comparison Projects $6 Trillion BTC Market Cap If Same Path Is Followed

Bitcoin’s market cap then and now, can potentially forecast what to expect if the same growth rate continues.

Back then, the market cap was just $6.8 billion – as much as companies now hold collectively. Today, it is $211 billion and ready to soar.

From the meager beginnings of just $6.8 billion worth of the earliest adopter money, that same amount worth of BTC is now held by some of the biggest names in finance and tech. And the list could soon grow.

If Bitcoin’s market cap maintained the same 3,000% ROI from when it was $6.8 billion to now, from here to the next peak would project a market cap of over $6.6 trillion.

Projected Bitcoin Market Cap After Next Bull Market Peak | Source: Bitcoin Market Cap on TradingView.com

Bitcoin is unlike any other asset before it, but even it yields diminishing returns, so the same trajectory isn’t likely. Anything is possible in the world of cryptocurrencies, however, especially given the current economic conditions.

A $6.6 trillion market cap would take Bitcoin to a price of over $350,000 per BTC at the current circulating supply. A 3,000% increase of company capital alone, would bring the total to $211 billion, where Bitcoin’s market cap is right now.

Out of all the numbers most likely to be false, it’s that one. If the trend of company capital coming into BTC continues, in four years, the once retail dominated market could be held by companies will billions in reserves that need protection from inflation.

If a domino effect occurs, and more companies follow suit, combined with the debasement of the dollar, $6.6 trillion may be selling Bitcoin’s next peak short despite what should be diminishing returns.

Featured image from Deposit Photos, Charts from TradingView.com & BitcoinTreasuries.org

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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