For the reason that outbreak of COVID-19, the world’s 14 largest banks have lost $635.33 billion in market capitalization. That is greater than thrice the present market capitalization of Bitcoin (BTC) and virtually double the capitalization of all cryptocurrencies.
Market capitalization of the world’s greatest banks. Supply: Buy Shares.
The place to begin for this information is December 19. For reference, Bitcoin’s market cap on the time was $130 billion. Because the world was getting into the pandemic induced recession, six of the banks on the record had a market cap increased than Bitcoin. At the moment, solely two are larger — JPMorgan Chase and Financial institution of America. The Industrial and Business Financial institution of China got here shut as properly, and are at present in a tie with the cryptocurrency.
Banks’ losses in the course of the pandemic. Supply: Buy Shares.
Nevertheless, each single financial institution on the record has shed billions of {dollars} off their market capitalization, whereas Bitcoin has gained $62 billion, or 48%, over the identical interval.
Bitcoin market capitalization. Supply: Glassnode.
As beforehand reported, the world’s largest pension fund lost an equivalent of Bitcoin’s market cap in a single quarter. In the meantime, Bitcoin has been gaining unprecedented adoption amongst conventional buyers as mirrored by the growth of Grayscale’s Bitcoin Trust. A publicly-traded firm lately even made Bitcoin its reserve currency.
Although main banks are unlikely to vanish anytime quickly, they appear to be fighting the redefinition of their worth proposition. The unfavorable outcomes they’ve skilled could have even been precipitated partly by the current multi-trillion dollar stimuli from the central banks around the world.
