Bitcoin's market cap now higher than 9% of global Banking sector

20 Jan, 2021 CryptoParrot

The growth of Bitcoin’s market capitalization positions the asset to rival the global banking sector’s cumulative value. In comparison, the growth of Bitcoin has seen its market cap equate to almost 10% of the global banking sector, a major milestone. 

Data presented by cryptocurrency trading simulator Crypto Parrot indicates that Bitcoin’s market capitalization of €0.56 trillion as of January 19, 2021 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. 

Between Q1 2019 and Q4 2020, the global banking sector market cap dropped by 14.08%. As of Q1 2019, the value was at €7.1 trillion, while in the last quarter of 2020, the market cap was at €6.1 trillion. However, the value increased between Q3 2020 and Q4 2020 by 17.6%. 



Both Bitcoin and banks rally from Q3 2020

Accounting for almost 10% of the cumulative global banking sector market capitalization is a significant milestone for the asset as it pushes for mainstream adoption.

Both Bitcoin and global banks have witnessed a tremendous surge in market capitalization 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. The successful deployment of vaccines has also acted as a significant boost for the sector leading to their stocks rallying. Furthermore, the returning to the norm in the U.S. political scene has also worked as a catalyst for the market cap’s growth.

On the other hand, Bitcoin largely remained resilient throughout the last year amid the coronavirus pandemic. From March, at the onset of the pandemic, Bitcoin value has surged by over 500%. Bitcoin hit an all-time high of over $41,000 on January 8, 2021. By 2020 Q3, the asset embarked on a major rally. The rally’s driving force is investors’ desire to seek an alternative asset that is decentralized and not tied to any central bank. 

Though some banking stocks plunged amid the pandemic, and the U.S. dollar’s weakness gave Bitcoin an unfair advantage, making it a go-to destination for new and established investors. Amid the price surge, central banks rolled out stimulus packages raising fears of fiat devaluation. 

Bank’s still superior to Bitcoin

Worth mentioning is that the comparison in market cap for Bitcoin and banks might be unfair considering the banks have trillions in assets under management, and they also pay dividends. However, Bitcoin can be considered as an asset similar to stock since the holder can also benefit from rising usage, which comprises rising demand

Although Bitcoin’s market capitalization will likely eat into the bank’s value, the traditional lenders are unlikely to disappear. However, the entry of institutional investors has now seen some traditional banks establish crypto-related services. 


User Avatar


Crypto Parrot Community Mgr - Here to help answer questions, fix things & help out when needed. Got feedback? Send those bad boys here: [email protected]

Related articles

Bitcoin records 3x higher average trading volume in October than Apple, Amazon, Microsoft

After experiencing increased volatility in late September, Bitcoin (BTC) appears to be regaining its momentum towards another all-time high…

2mins 12 Oct, 2021 CryptoSlashy
Goldman Sachs, Wells Fargo among stocks that outperformed Bitcoin in 2021

The rise in Bitcoin's popularity has increasingly positioned the asset as a formidable investment product directly competing with traditional stocks. Despite recording significant returns, some traditional stocks have outperformed Bitcoin in 2021.…

2mins 29 Sep, 2021 John_Trevors
Almost 5,000 new cryptocurrencies launched in the last 12 months

As the cryptocurrency industry continues to mature with mainstream adoption, investors are pumping more money into the sector contributing to the sector’s popularity.…

2mins 22 Sep, 2021 CryptoParrot
Ethereum adds over 38 million new addresses in 2021, 22% of all ever created

The Ethereum network plays a key role in the cryptocurrency circles, with the asset recording significant interest.…

2mins 14 Sep, 2021 CryptoParrot
Start trading

Recommended crypto exchange

Buy & sell Crypto in minutes

Learn more


Login to comment