Source: Companies Market Cap
Bitcoin finally reached a new all-time high (ATH) after a four-month lull, nearing $109,500 on May 21. The cryptocurrency last hit the ATH of $109,241 on Jan. 20, ahead of pro-crypto Donald Trump's presidential inauguration. At the time of writing, BTC was trading at $111,861.22 — its new record high so far.
Launched in 2009, Bitcoin is the world's largest cryptocurrency with a market cap of $2.2 trillion. As of now, it has dethroned Amazon and Alphabet. If it were a company, Bitcoin would be the fourth-most valuable company. Now, only Microsoft, Nvidia, and Apple stay ahead of Bitcoin.
Thomas Perfumo, Kraken’s global economist, mentioned that Bitcoin's new all-time high indicates this crypto bull market has further room to run. Perfumo highlighted that recovering equity markets, heavyweight ETF flows, and the ever-present corporate demand for the asset collectively create a feedback loop propelling Bitcoin higher. He also pointed out Bitcoin treasury companies as agents fuelling the price rally.
However, no other leading cryptocurrencies have achieved such success recently. Ethereum, the second-largest cryptocurrency, was trading at $2,652.15 at the time of writing, 45% lower than its ATH of $4,891.70. XRP was trading at $2.42 at press time, 37% lower than its ATH of $3.84.
The total crypto market reached $3.5 trillion on May 22, with BTC accounting for more than 60% of the share.
First-quarter gross domestic product contracted 0.3%, well below the 3% growth witnessed last summer. The University of Michigan's Consumer Confidence Survey fell sharply to 50.8 in May, down 27% from one year ago. Americans now expect year-ahead inflation to be 7.3%, up from 6.5% last month.
The risk of more job losses and inflation reasserting itself because of tariffs, including those on China, Canada, Mexico, and autos, has tied the Fed's hands. Adjustments to rates could impact inflation and recession trends.
Morgan Stanley recently released a midyear update to its outlook for Fed interest-rate cuts and the US economy. Chief US Economist Michael Gapen forecasted slower growth and persistent inflation. He expects GDP growth of 1% and higher unemployment toward the end of 2026. He suggests the Fed will more significantly adjust interest rates in response to the economy.
Overall, these economic conditions indicate challenges, with deficits expected to rise significantly.
This article has been published in thestreet.com via Yahoo News.
Bitcoin smashes all-time high as bull run intensifies
Bitcoin hit a new record high of $111,861.22 on May 22.
finance.yahoo.com
