4 Signs of a Trillion-Dollar Sea Change in Bitcoin Valuations

Bitcoin’s price cruised to a historical record high price level of around almost $123K earlier this week.

Over the past 30 days, the asset is up by about 13%, at the time of this writing. Meanwhile, the comparable 30-day window posted 4.73% gains for the most popular US stock index.

In other words, Bitcoin gained what the S&P 500 Index averages in a typical year in under one week while the stock market stalled. Moreover, for the month’s trades, BTC delivered returns on investment at nearly 3x the pace of stocks.

With both Bitcoin and US stocks trading at historic record highs, the 30D BTC Pearson correlation to the S&P 500 climbed from slightly inverse at the start of July to a 72% positive correlation by 7/11.

But the cryptocurrency is climbing higher and faster. That’s because its total market capitalization is much lower than the S&P 500’s, so it’s easier for bullish markets to move the needle.

It’s also because Bitcoin is still relatively new and not as far along the adoption curve for its total addressable market as US stock favorites like Apple and Google.

Here are four signs of a trillion-dollar sea change in Bitcoin valuations.

1. Bitcoin Price Historical All-Time High

After hitting its ATH, Bitcoin’s market cap floated at $2.34 trillion. One trillion dollars ago, the last time the BTC economy moved at a $1.34 trillion market cap, it was May 28th, 2024.

That was a trillion dollars added by saver-investors and users in just 13-and-a-half months. As the currency gathers pace to the peak of this multi-year bull run, it could pull that trick again in even less time.

Wall Street is stoking this rally, diverting billions of dollars a week away from stocks and to Bitcoin and Ethereum ETFs. Leveraged derivatives and futures traders are also pouring on the rocket fuel.

On the current come up, BTC’s market cap just eclipsed Google’s and the global market valuation for all above-ground silver.

That’s a major milestone for Bitcoin, a powerful and useful engine, and a payments and savings platform like silver markets. But unlike silver, BTC can move around the world nearly as fast as lightning. Unlike Google, it is secured by the blockchain.

2. US Govt Now Accepts BTC For Home Loans

The US government now officially accepts Bitcoin and other cryptocurrencies as financial collateral for home loans through Fannie Mae and Freddie Mac.

“Previously,” reported USA Today, “mortgage applicants had to convert any Bitcoin holdings into U.S. dollars if they wanted their crypto to count.” But now BTC holders can keep their crypto and list it as an asset on federal mortgage applications.

Earlier, on 7/6, Benzinga and Yahoo Finance highlighted a question about Bitcoin’s use case that someone asked on Reddit:

“If only 5% of the population owns BTC, what is the use case? So, if 19 million bitcoin are presently ‘minted’ and only 4% of the population are holders… What good is a ‘currency’ that only 5% of the population owns???”

The article noted the stakes for Bitcoin’s market valuation, calling the answer to the Redditor’s question “a fundamental tension that’s been brewing in the crypto space for years.”

At the end of June, the US Federal Housing Finance Agency has now taken one of the most compelling use cases for Bitcoin in its history and made it real.

3. Corporations, Whales, and VCs Bullish

Murano Global, the techie real estate lending platform with a hot new stock on the Nasdaq, just signed an equity funding agreement in July to buy $500 million worth of Bitcoin.

So the company is selling its own stock to buy as much as half a billion USD worth of BTC with the proceeds.

Under this arrangement, investors give Murano a dollar in return for a dollar’s worth of their company’s stock. Murano turns around and uses that dollar to buy a dollar’s worth of Bitcoin.

This supercharges the investor’s stake in the company with the promise of corporate finances hedged by Bitcoin from the risks of inflation and wasteful corporate spending.

And that’s just an isolated example – you also have your Strategies, Metaplanets, and all other companies that are running this playbook to perfection during this cycle.

80,000 BTC From 2011 Make A Monster Splash

The growing market of long-term corporate Bitcoin buyer-holders may have a willing seller in the mysterious “Sleeping Beauty” BTC addresses that have remained locked since 2011.

In the first half of July, these 80,000 BTC moved for the first time in nearly a decade and a half.

They may already be sold, or the owner may be getting them ready to scoop long-awaited profits in anticipation of a rally peak that this monster Bitcoin whale just can’t pass up at the moment.

It’s not just Internet whales and corporate CFOs who are still outrageously bullish for the class-leading cryptocurrency. VCs are back to funding new blockchain startups in earnest.

Bitcoin is back to raising venture capital at levels unseen since the last bull market peak in 2022.