Key Takeaways
- Bitcoin's market capitalization outstrips Berkshire Hathaway, surpassing $800 billion.
- The cryptocurrency's growth contrasts with Berkshire Hathaway's more stable performance.
- Bitcoin's surge in value signifies a potential approach towards its historic peak and $1 trillion market cap.
Bitcoin has surpassed the market capitalization of Berkshire Hathaway, an American multinational conglomerate. This remarkable achievement occurred on December 4th, with Bitcoin's market cap soaring above $800 billion.
The shift in market dynamics became evident on December 3rd when Bitcoin began its upward trajectory, outpacing Berkshire Hathaway regarding market value.
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This surge was further fueled over the weekend as Bitcoin's value exceeded $40,000, elevating its market cap beyond Berkshire Hathaway's closing market cap of $779 billion on December 1st, based on its class A stock (BRK.A).
Despite a recent 1.3% decline in BRK.A stock, Berkshire Hathaway has maintained a year-to-date growth of 14.7%, showcasing resilience in its primary business of insurance and investments in major corporations.
In contrast, Bitcoin's volatility has been striking, with a 20% increase over the last month and an impressive 150% growth YTD. The cryptocurrency reached over $41,000, a peak not seen since April 2022.
Bitcoin's market capitalization, now at $811 billion, overshadows Berkshire Hathaway's value by 4%. This growth has sparked significant discussions in the financial world, with cryptocurrency lawyer John Deaton highlighting the irony on X (formerly Twitter).
He referenced Warren Buffett's 2018 critique of Bitcoin as "rat poison squared," quipping:
That’s a pretty damn big bottle of rat poison.
Data puts Bitcoin as the 10th largest asset by market cap, following tech giants Meta Platforms and Nvidia, valued at $834 billion and $1.2 trillion, respectively.
Bitcoin's ascent past the $800 billion mark disrupts traditional market hierarchies and signals a potential return to its all-time high of $69,000 seen in November 2021. This bullish trend in Bitcoin's market cap suggests the possibility of the cryptocurrency revisiting its historic $1 trillion market cap, previously attained in February 2021.
