Bitcoin value has fallen so considerably its entire market cap is now far less than the value of just one financial company, Visa.
Nor is Visa the most valuable financial company. That goes to JP Morgan, which is now at $430 billion.
MasterCard is nearly 3x bitcoin’s market cap too at $300 billion, with crypto’s market cap in combination now worth just circa 10% of these three companies.
The significant rise in stocks is now making plenty wonder whether they are detaching a bit from reality.
Just as plenty wonder whether cryptos are becoming undervalued considering their global nature and their unique characteristics, including that of hard money.
The answer is presumably that for now it is stocks time to roar, with money seemingly being taken out of other markets and sent to US stocks in particular.
At some point, you’d think they’ll have to take profits and send those profits somewhere. Crypto perhaps being one place to park it, but when, is anyone’s guess.
Hence diversification being the name of the game for what is gained quickly can also quickly be lost as the herd keeps on herding.