Bitcoin has overtaken Alphabet to become the world’s fifth most valuable asset, with a market cap of $1.87 trillion. This shift is accompanied by a decoupling from US tech stock correlations, rising 15% in April. Concurrently, Alphabet faces various challenges impacting its market position. Bitcoin’s valuation now exceeds that of two Teslas, underlining its financial growth despite remaining below its all-time high.
Bitcoin (BTC) has now officially surpassed Alphabet (Google) to become the fifth most valuable asset globally, with a market capitalisation of $1.87 trillion as of April 23. This value positions Bitcoin just behind gold, Apple, Microsoft, and Nvidia, highlighting its growing stature in the financial market as it edges ahead of Alphabet’s valuation of $1.859 trillion.
Bitcoin’s recent performance marks a significant “decoupling” from its previous correlation with US tech stocks, gaining 15% in April, while the Nasdaq 100 only managed a 4.50% increase. This divergence follows a protracted period where crypto investors had anticipated a robust rally after the elections but faced disappointing returns instead.
Despite the April gains, Bitcoin’s price remains 16% lower than its peak of $109,000 reached in January. Recent statements from former President Trump, including critiques of Federal Reserve Chair Jerome Powell and a move to establish a Strategic Bitcoin Reserve (SBR), have rekindled interest among investors.
Analysts have noted that the questioning of the Federal Reserve’s independence could benefit Bitcoin, suggesting that it offers high volatility potential for portfolios without the risks currently associated with US tech investments. Macro analyst Fejau stated that Bitcoin is primed for growth in this unusual market environment.
In comparison, Alphabet is encountering challenges such as regulatory pressures, antitrust scrutiny, and a decline in digital advertising revenues. Additionally, the rise of AI competitors and lowered growth projections have negatively impacted confidence in Google’s future market position.
To illustrate Bitcoin’s worth, its $1.87 trillion valuation surpasses that of two Teslas, which famously added Bitcoin to its balance sheet when it was valued around $33,500 in early 2021. With current valuations, Tesla’s Bitcoin holdings reflect approximately 180% gains, equating to over $1 billion in profit.
