Bitcoin has overtaken silver in market capitalisation, reaching $1.75 trillion after briefly crossing $89,000 before retracing slightly. The achievement positions Bitcoin as the eighth-largest global asset, surpassing silver, which fell to $1.732 trillion. The cryptocurrency has risen by 30% over the past week, while silver declined by over 6%.
This marks the second time Bitcoin has flipped silver in 2023, signalling a growing shift in perception among traditional investors. Increasing institutional demand and enthusiasm for spot Bitcoin ETFs have driven its rise, while silver, often viewed as a stable store of value, has struggled.
Broader market optimism, spurred by recent political shifts in the US elections, has played a role in Bitcoin’s surge. Pro-crypto lawmakers gaining power have boosted investor sentiment, with the “Bitcoin Industrial Complex” index seeing record trading volumes. Stocks like Coinbase and MicroStrategy hit multi-year highs, reflecting the growing adoption of Bitcoin as a hedge against market uncertainties.
Bitcoin reached a new all-time high of $89,604 on Tuesday, pushing its market value to $1.77 trillion before experiencing a slight dip as long-term holders began to move their assets. At the time of writing, Bitcoin is trading at $88,400, with daily trading volume hitting $133 billion. The surge in price has prompted a notable increase in the circulation of dormant Bitcoin, with two-year and three-year-old coins seeing significant movements, signalling that long-term holders are taking profits.
The rally has also positively impacted the broader crypto market, which saw the total market cap climb to an all-time high of $3.11 trillion, marking a 4.7% increase over the past 24 hours. In addition, the market saw a $765 billion surge over the past week, with institutional investors contributing to the increased momentum. Bitcoin’s Market Value to Realized Value (MVRV) ratio is now at 178%, indicating that the average Bitcoin holder is currently experiencing a 178% profit.
The surge in Bitcoin’s price and overall market activity has sparked renewed interest in the sector. Crypto-related investment products have seen their highest inflows of the year, with $31.3 billion invested, bringing the total assets under management to $116 billion. The post-election market optimism, especially following Donald Trump‘s win, has led to a green market and increased institutional involvement in the crypto space.
Italy’s economy minister, Giancarlo Giorgetti, is open to reviewing proposals to raise the tax on cryptocurrency capital gains. The government’s 2025 budget, to be approved by parliament by December, includes a plan to increase the tax rate on capital gains from cryptocurrencies like bitcoin to 42% from 26%. This change is expected to bring in an additional 16.7 million euros annually, adding to the current 27 million euros collected from the existing tax rate.
Despite the modest revenue boost in a country with a budget exceeding 800 billion euros, the proposal has faced criticism, particularly from Giorgetti’s own League party. Lawmaker Giulio Centemero argued that raising the tax could be “counterproductive” and called for more in-depth dialogue with market participants to address the issue.
Giorgetti, however, defended the measure, stating that speculation should be taxed more. His comments indicate a willingness to adapt the proposal but also reflect his stance on ensuring that speculative investments face higher taxation. The outcome of these discussions will depend on ongoing negotiations within the government.
Donald Trump’s 2024 election victory has led to a significant surge in Bitcoin wealth, creating over 11,000 new Bitcoin millionaires. On 6 November, the number of Bitcoin wallets holding $1 million or more reached 132,842, up from 121,061 just a month earlier. The increase follows a remarkable 7.8% rise in Bitcoin’s value within 24 hours.
The price of Bitcoin has recently broken its all-time high, now trading at $75,428, following a strong 20% gain over the past month. Trump’s commanding lead in the electoral race, coupled with renewed interest in Bitcoin, has contributed to this price surge. Analysts suggest that Trump’s pro-crypto stance may bring about a favourable regulatory shift, further boosting market conditions.
Some experts are even predicting Bitcoin’s price could soar to $250,000 by early 2025, as the market responds positively to these developments.
Bitcoin reached a record peak in Asian trading, rising 7% to $75,060, as anticipation grew for Donald Trump’s return to the White House. Investors are betting on a softer regulatory stance towards cryptocurrencies, which they see as more likely under a Trump administration. Early election projections showed Trump winning 15 states, while Kamala Harris captured seven and Washington, D.C., but the final result remained too close to call.
Matthew Dibb of Astronaut Capital said the market’s reaction suggests a belief that a shift in the US Securities and Exchange Commission’s attitude under Trump could remove some barriers to cryptocurrency growth. He noted that a Democrat win might have signalled a short-term setback for crypto, although perhaps not in the long run. Alongside Bitcoin, Ether also saw gains, increasing 7.5% to $2,593, though it still trails its 2021 high of $4,867.
A group of financial tech firms, including Robinhood, Kraken and Galaxy Digital, has launched a new stablecoin, USDG, through a joint initiative called the Global Dollar Network. The stablecoin pegged to the US dollar, is designed to drive stablecoin adoption worldwide while benefiting its network partners financially. The move signals a growing interest in digital assets as the industry anticipates friendlier US regulations towards cryptocurrency.
Stablecoins like USDG offer a stable alternative to volatile cryptocurrencies like Bitcoin, providing a fixed value by linking to traditional currencies such as the US dollar or euro. Issued from Singapore by the crypto platform Paxos, USDG will be managed by a governing committee of network partners. The consortium aims to establish USDG as a global stablecoin, challenging established market leaders Tether and USD Coin, which currently dominate the sector.
Despite the competition, the Global Dollar Network promises participants nearly all the rewards generated from the stablecoin, encouraging wide participation. Paxos CEO Charles Cascarilla highlighted the initiative’s goal of spurring global adoption, viewing stablecoins as essential to integrating cryptocurrency into everyday financial systems.
Deutsche Telekom’s subsidiary, MMS, and Bankhaus Metzler have launched a pilot project to harness surplus renewable energy for Bitcoin mining, aiming to gather data that could help stabilise Germany’s energy grid. Using power generated from renewable sources that would otherwise go unused, the initiative is intended to address the frequent energy surpluses created when supply outpaces grid demand.
Located at Riva GmbH Engineering in Backnang, the project is supported by photovoltaic systems and managed by Metis Solutions. MMS will oversee the mining operations, while Bankhaus Metzler will explore potential financial applications for cryptocurrencies with this sustainable energy use.
Deutsche Telekom’s team views Bitcoin mining as a flexible solution to balance energy grids, with the potential to respond to fluctuating renewable energy production. As Hendrik König from Bankhaus Metzler highlighted, the project aims to expand Germany’s use of blockchain technology, which is becoming increasingly significant in various sectors beyond finance.
Microsoft is under scrutiny from shareholders regarding a potential investment in Bitcoin as they prepare for a crucial vote in December. The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), suggests that the tech giant conduct an assessment of investing in the cryptocurrency. Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, warned that if Microsoft chooses not to invest and Bitcoin’s value rises, it could face legal repercussions from disgruntled shareholders.
Despite the board’s recommendation to reject the proposal, citing existing evaluations of various assets, Peck noted that the discussion initiated by the proposal is significant. He believes it may pave the way for a stronger resubmission in 2025, irrespective of the current vote’s outcome. The NCPPR highlighted the successful investment strategy of MicroStrategy in Bitcoin, pointing out that it has significantly outperformed Microsoft this year.
As Bitcoin trades at approximately $67,035, down from near its all-time high of $73,562, the growing institutional interest in cryptocurrencies, particularly through spot Bitcoin exchange-traded funds, underscores the urgency for companies like Microsoft to reconsider their stance on digital assets.
In a pioneering move, British pension specialist Cartwright has helped a UK pension fund allocate 3% of its £50 million assets into Bitcoin, marking the first such investment in the country. The decision follows thorough consultations on environmental, social, and governance (ESG) factors, security, and the investment potential of Bitcoin, according to Cartwright’s head of digital assets, Glenn Cameron.
Unlike similar investments where funds have opted for Bitcoin-linked ETFs, this UK pension fund has chosen to hold the asset directly, with private key security spread across five independent institutions. This allocation stands out for its size, as it represents a much larger percentage of assets than recent Bitcoin investments by pension funds abroad, such as the State of Wisconsin’s 0.1% allocation.
Cartwright has also announced a new Bitcoin Employee Benefits scheme, allowing interested employers to pay staff in Bitcoin. With five companies already considering the scheme, Cartwright is positioning itself at the forefront of integrating Bitcoin into UK pension and employment benefits, reflecting its commitment to a forward-thinking approach to digital assets.
The State Bank of Pakistan (SBP) has proposed a significant framework to recognise digital assets, including cryptocurrency, as legal currency in Pakistan. If approved, the plan would allow the SBP to issue its digital currency, potentially paving the way for a central bank digital currency (CBDC) within the country. This shift would mark a major departure from the SBP’s previous cautionary stance on virtual currencies.
In a proposed amendment to the State Bank of Pakistan Act, digital currencies such as Bitcoin could gain legal tender status, meaning they would be accepted for payment of goods, services, and debts. The framework also suggests measures to penalise any unauthorised issuers of digital currency, granting the SBP comprehensive authority over both physical and digital currency management.
The proposal further includes a provision allowing dual nationals to serve in senior roles within the central bank, a reversal of past restrictions. This move reflects the government’s broader economic strategy, which aims to modernise Pakistan’s financial system and boost GDP growth in line with global digital finance trends.
