Bitcoin’s market cap now higher than 9% of global Banking sector
Data presented by cryptocurrency trading simulator Crypto Parrot indicates that Bitcoin’s market capitalisation of €0.56 trillion accounts for about 9.2% of the market cap of the global banking sector...
As of Q4 2020, the global banking sector market cap stood at €6.1 trillion after growing by 17.6% from Q3’s €5.2 trillion.
Between Q1 2019 and Q4 2020, the banking sector market cap dropped by 14.08%. As of Q1 2019, the value was at €7.1 trillion, growing to €7.2 trillion in the second quarter but slightly declined to €7.2 trillion as of Q3 2019. The highest value over the period was €7.2 trillion in Q4 2019.
The market cap significantly dropped by 35.52% in Q1 2020 to €4.9 trillion before slightly rising to €5.2 trillion in the next quarter.
The Crypto Parrot research highlighted the drivers impacting the market cap of both Bitcoin and banks in the last quarter. According to the research report:
“Both Bitcoin and global banks have witnessed a tremendous surge in market capitalisation from Q3 2020. Towards the end of 2020, the banking and financial sector in general recovered from the effects of an economic turmoil mainly caused by the coronavirus crisis. For Bitcoin, rally’s driving force is investors’ desire to seek an alternative asset that is decentralised and not tied to any central bank.”
Accounting for almost 10% of the cumulative global banking sector market capitalisation is a significant milestone for the asset as it pushes for mainstream adoption.
The data is as of January 19, 2021