Bitcoin (BTC) has surpassed tech giant Alphabet (GOOGL) to become the world’s fifth most valuable asset by market capitalization. As of today, April 23, Bitcoin’s market cap has surged to an impressive $1.87 trillion, eclipsing Alphabet’s $1.859 trillion valuation, according to recent asset ranking data. This places Bitcoin behind only gold, Apple, Microsoft, and Nvidia in terms of market value.
Bitcoin Decouples from Tech Stocks Amid Market Shifts
This ascent comes at a time when Bitcoin is exhibiting a notable “decoupling” from its traditional correlation with US tech stocks. Notably in April, while the Nasdaq 100 saw a respectable 4.50% return, Bitcoin’s price rallied by a substantial 15%. This divergence follows a period where crypto investors had anticipated a stronger post-election rally that did not fully materialize.
Trump’s Policies and Market Sentiment Fuel Bitcoin’s Rise
Despite currently trading 16% below its $109,000 all-time high reached in January, coinciding with President Trump’s re-inauguration, Bitcoin is experiencing renewed investor interest. Analysts point to Trump’s recent criticisms of Federal Reserve Chair Jerome Powell and his executive order establishing a Strategic Bitcoin Reserve (SBR), which is nearing its 60-day review, as contributing factors.
Vetle Lunde, head of research at K33, noted that “chatter questioning Fed independence is having positive spillover effects on BTC.” Macro analyst Fejau further suggests that capital outflows from US assets could benefit Bitcoin, highlighting its immunity to tariffs and its potential to offer high portfolio beta without the current risks associated with US tech. He posits that Bitcoin is uniquely positioned for the current market regime.
Also Read: Bitcoin Rallies to $93K As Bullish Patterns Point to $106K Breakout Potential
Alphabet Faces Headwinds as Bitcoin’s Value Soars
Alphabet, in contrast, is navigating challenges including regulatory scrutiny, antitrust concerns, and a deceleration in digital advertising revenue. The emergence of AI-focused competitors and lowered growth forecasts have also impacted investor confidence in Google’s long-term market dominance.
The sheer scale of Bitcoin’s current valuation is underscored by the fact that its $1.87 trillion market cap now exceeds the combined value of two Tesla companies. It’s worth recalling that the electric vehicle manufacturer made a significant investment in Bitcoin in early 2021, currently enjoying gains exceeding $1 billion on its holdings.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
