Bitcoin

Bitcoin recovers quickly and reaches $41,000 with market capitalization exceeding Tencent

Bitcoin goes beyond the market capitalization of Tesla for a short period, as the bulls suggest that the bullish momentum does not end at US$40,000.

Bitcoin (BTC) returned to US$40,000 on January 8 when another period of price consolidation briefly ended.

Data from Cointelegraph Markets, Coin360 and TradingView showed that BTC/USD rose quickly to recapture the psychologically significant price level during Friday’s trading.

After a 9% drop from an all-time high the previous day, Bitcoin managed to stay low for only a few hours before the bullish momentum returned. After that, the largest cryptomoeda not only reached its historic highs, but also delivered a new high: $40,087.

„It seems the price only drops to shake the weaker hands,“ summed up a popular social media trader on the day.

Bitcoin’s market capitalization grows

Bitcoin also beat the market capitalization of Chinese giant Tencent and briefly overtook the „beloved“ Tesla technology company, rising to $41,000 per currency.

Data from CoinMarketCap and Companies Market Cap confirmed that on January 7th Bitcoin almost entered the top five companies by market value.

As BTC/USD surpassed the $40,000 mark, immediate Bitcoin’s market capitalization grew to unprecedented levels, reaching $745 billion. A day later, after a correction, the value retreated to US$737 billion before recovering its previous record.

At the same time, Tesla delivered a fast daily gain of 7.3%, allowing it to outperform Bitcoin once again after losing its market capitalization capacity to cryptomoeda for a short period. On Friday, the company was at $773 billion while Bitcoin was once again navigating for $40,000.

A more decisive victory came over Chinese technology giant Tencent, however, which with $716 billion bowed to Bitcoin’s momentum. Previously, Tencent was also worth more than Tesla.

As the Cointelegraph reported, Tesla also performed better than stocks and crypto in 2020, beating even Bitcoin’s performance against the March casualties. A look at the growth of Tencent’s shares, however, underscores the slow pace of gains that characterized other stocks compared to cryptomoeda.

„There are still companies in the world that are worth more than #Bitcoin. Madness,“ commented Tyler Winklevoss, co-founder of the Gemini exchange, about the phenomenon.