Bitcoin and Crypto Market Caps Challenge Global Economies

Bitcoin alone holds a market cap of around $1.74 trillion, which is more than Spain’s GDP. Expectations are now high for even more growth and some believe BTC could hit $100,000 by year-end. Major trading activity also resulted from Bitcoin’s rally, which set new records among U.S. crypto-related stocks like Coinbase and MicroStrategy. Investors anticipate that the bull run will likely continue and peak in late 2025. While Bitcoin and Solana are seeing strong confidence from investors, Ethereum’s outlook is still more divided.

Crypto Market Cap Surges to Record High

The cryptocurrency market reached a new milestone after its total market capitalization soared to an all-time high of $3.12 trillion on Nov. 11. This massive growth was largely driven by Bitcoin’s (BTC) surge to $89,500. This increase in market cap was so large that it pushed the crypto sector’s valuation close to surpassing France’s gross domestic product (GDP). At this level, the crypto market could rank as the world’s eighth-largest economy, only trailing behind major players like the United States, China, and Germany.

BTC’s price action over the past 24 hours (Source: CoinMarketCap)

Bitcoin itself now holds a market capitalization exceeding $1.74 trillion, making it more valuable than Spain’s GDP, according to recent figures from the International Monetary Fund. This leap is very similar to the previous peak of November 2021 when the crypto market cap also hit $3 trillion shortly after Bitcoin reached its previous record price. 

Crypto’s market cap also places crypto valuations ahead of tech giant Microsoft and brings it closer to Nvidia and Apple, which are some of the world’s most valuable companies.

Top assets by market cap (Source: Companies Market Cap)

In a recent interview, the founder of 10x Research Markus Thielen shared that he is very confident in Bitcoin’s growing dominance in the crypto sphere. He also believes this dominance will likely continue as the market trends toward $4 trillion in valuation. 

Thielen expects Bitcoin’s momentum to continue, and set a possible price target of $100,000 by year-end. This would bring Bitcoin’s market cap close to $2 trillion. Thielen also mentioned that there has been a shift in market performance which suggests that while Solana-based tokens are poised to outperform, some tokens from the previous bull cycle may struggle to keep up. 

Bitcoin Boom Sets New Trading Volume Record

Bitcoin’s surge to over $89,000 on Nov. 11 also led to record-breaking trading volumes across United States spot Bitcoin exchange-traded funds (ETFs), MicroStrategy Inc. (MSTR), and Coinbase Global Inc. (COIN). Combined they saw their daily trading volume reach $38 billion. 

This shattered the previous high of $25 million that was set in March. Bloomberg ETF analyst Eric Balchunas pointed out that BlackRock’s iShares Bitcoin Trust ETF alone saw $4.5 billion in trading volume. He even described the day as “Volmageddon” due to the extreme influx.

Among the day’s standout performers was MicroStrategy, whose stock jumped by over 25% to $340, which was its highest level in almost 25 years. This was backed by $12 billion in trading volume. MicroStrategy also announced an additional purchase of 27,200 Bitcoin for $2.03 billion, bringing its holdings to 279,420 BTC. 

MicroStrategy stock price (Source: Google Finance)

Coinbase similarly experienced some impressive gains after rising by almost 20% to close at $324.2. This is a level Coinbase has not seen since 2021. Both stocks ranked among the top five most-traded equities during the early trading hours, and they surpassed even Apple and Microsoft.

Bitcoin miners reaped major gains as well. MARA Holdings surged nearly 30% to $25.01, which boosted its market cap to over $7 billion. Other mining firms, including CleanSpark, Bitdeer Technologies, Hut 8, and Bit Digital, all closed with increases of more than 25%.

The Bitcoin rally was largely fueled by positive sentiment surrounding Donald Trump’s recent election win and a growing number of pro-crypto Republican politicians in Congress. Some enthusiasts, like Bitcoin activist Dennis Porter, believe that Bitcoin could become America’s next strategic reserve asset.

Coinbase and Galaxy Digital Stocks Soar

On Nov. 11, shares of Coinbase Inc. surged by close to 20%. This allowed it to surpass the $300 mark for the first time since 2021. U.S. crypto stocks have experienced huge gains after Donald Trump’s election, and research suggests that Trump’s win is seen as advantageous for crypto, especially as Coinbase has been under regulatory pressure from the SEC. 

Morningstar Inc. researcher Michale Miller pointed out that a more crypto-friendly administration could ease constraints on Coinbase’s staking business. As a result, this could create a much more favorable environment for cryptocurrency prices.

Coinbase stock price (Source: Google Finance)

Coinbase’s CEO, Brian Armstrong, is very optimistic after the firm’s recent success, and stated that the election results demonstrate full support for crypto. He thinks it also signals a turning point after years of opposition from figures like Senator Warren and SEC Chair Gary Gensler. Armstrong added that the upcoming Congress could be the most pro-crypto yet.

Coinbase recently reported $1.2 billion in revenue and $75 million in profit for Q3 of 2024, and it is now focused on expanding blockchain access to a billion users. The company is also making a lot of progress by integrating stablecoins and enhancing its Base network, which is a layer 2 scaling solution. 

Galaxy Digital also reported record trading activity on Nov. 5, driven by renewed interest after Trump’s election win. CEO Michael Novogratz described the day as an affirmation of the firm’s work

Crypto Bull Run Expected to Peak in Late 2025

Investors are anticipating a continued crypto bull run into 2025, and expect a market peak in the second half of the year, according to a report from Web3 investing firm MV Global. Almost half of surveyed investors, including large crypto-focused venture firms, hedge funds, and high-net-worth individuals, predict the market will top out during this period. MV Global’s managing partner, Tom Dunleavy, pointed out that this widespread sentiment might already be influencing market prices.

Expectations for Bitcoin are high, with projections between $100,000 and $150,000 per coin. Solana also garnered a lot of  investor confidence, with 30% of those surveyed predicting a price peak of over $600 before the cycle concludes. 

Sentiment around Ethereum (ETH), however, is a bit more mixed. One-third of investors expect modest gains, with ETH likely to top out between $3,000 and $5,000. Another third predicted ETH could reach up to $7,000. Interestingly, the report found that being bullish on ETH is now a contrarian position among investors.

ETH’s price action over the past 24 hours (Source: CoinMarketCap)

Bitcoin saw a huge price rise after Trump’s election, but ETH also gained some traction after spiking 10% to around $3,300. This is, however, still below its 2021 peak of over $4,700. Solana’s native token, SOL, also surged to a seven-month high of $220. It is also still under its 2021 peak of $260.