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Bitcoin dethroned: Silver makes a spectacular comeback

Mon 20 May 2024 ▪ 4 min of reading ▪ by Evans S.

The crypto and precious metals world was shaken this year by an unexpected turn of events: silver outperformed Bitcoin, regaining its place among the most valuable assets. This development has disrupted analysts’ forecasts and captured the attention of investors worldwide. How did silver manage to dethrone the king of cryptos?


Silver on Top

After losing its position in March, silver made a spectacular comeback, surpassing Bitcoin in market value. According to CoinGecko, the world’s second most precious metal experienced a 33.4% increase, reaching a market value of $1.83 trillion. Meanwhile, Bitcoin, after peaking at $73,737 on March 14, dropped by 9.5%, seeing its market value shrink to $1.31 trillion.

This dynamic propelled silver to the eighth position among the most valuable assets, thus surpassing Bitcoin. This performance is all the more impressive given it comes amid increased volatility in financial markets, where investor confidence fluctuates with economic and geopolitical news.

The confrontation between Bitcoin and silver is not limited to a mere rivalry in financial markets. It embodies two distinct visions of value: one based on revolutionary and decentralized technology, the other on a precious metal with a millennial history. Currently, silver’s market value exceeds Bitcoin’s by $500 billion, which would need to increase by 40% to reverse this trend.

Despite this performance, Bitcoin remains a major player in the global financial landscape, staying in the ninth position among the most important assets. It is surpassed by giants such as gold, Microsoft, Apple, Nvidia, Google, Saudi Aramco, Amazon, and now, silver. This position illustrates Bitcoin’s resilience and its ability to capture investor interest, even during downturns.

The Next Challenges for Bitcoin

The future prospects for Bitcoin are subject to debate among industry experts. Dylan LeClair, a Bitcoin analyst, observed that Bitcoin tends to double in value after reaching new peaks, particularly during halving events. However, Bitcoin’s current market value remains much higher than in 2020, 2016, and 2012. This makes such performance more challenging to achieve.

Mike Novogratz, founder and CEO of Galaxy Digital, predicts that Bitcoin will remain in a consolidation phase between $55,000 and $75,000 over the coming months, with a possible increase towards the end of the second quarter. Bitfinex analysts even anticipate a price of $150,000 in the next 12 months, supported by spot Bitcoin exchange-traded funds and the post-halving effect.

Market sentiment remains optimistic, with an index of 65 out of 100 according to the Crypto Fear and Greed Index, indicating a strong appetite for risk among investors. This confidence could play a crucial role in Bitcoin’s future path.

The remarkable rise of silver against Bitcoin is a reminder of the volatility and unpredictability of financial markets. While silver regains its place among the most valuable assets, Bitcoin continues to attract investor interest and hope. This competitive dynamic could well signal the beginning of a new era for these two financial giants, each with its own strengths and challenges.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.