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Yesterday we discussed the bullish impact SpaceX has on Bitcoin, given that it sits on the balance sheet of what has rapidly become the eighth largest asset by market cap in just a few days.
SPCX is up over $200 per share after another green day as the hype remains exceptionally strong. This meteoric rise has rocketed SpaceX to battle Amazon for the position of the fifth largest company in the world, boasting a current market cap of $2.66T.'
We have previously highlighted the liquidity drain that SpaceX was exerting on markets before the IPO launched, and that exact effect has persisted post launch. Both the S&P 500 and Nasdaq fell overnight as capital flows continued to rotate heavily into SpaceX. Interestingly, SpaceX is not yet a constituent of the S&P 500 despite its immense valuation. It will remain excluded from the index for at least one year and until it meets specific profitability requirements.
Putting Bitcoin into Perspective
This massive influx of capital into Elon Musk’s empire highlights an incredible disparity when compared to Bitcoin. Bitcoin is currently the 15th largest asset in the world with a market cap of $1.316T. Remarkably, the asset has now been overtaken by Elon Musk himself. Thanks to the launch of SpaceX and its explosive 40% growth in just a few trading days, Musk has officially become the world’s first trillionaire. For every $1 SpaceX grows by, Musk’s net worth increases by $6 billion, pushing his personal wealth to $1.4T, larger than the entire market cap of Bitcoin.
We bring this up to highlight how deeply undervalued Bitcoin remains at current levels. The fact that a single individual possesses more wealth than an entire global monetary asset perfectly illustrates exactly where we are in this cycle. At its peak, Bitcoin’s market cap was just shy of $2.5T, meaning the asset is sitting in a nearly 50% drawdown from that high.
Rather than focusing entirely on the drawdowns or fearing further downside, investors with long-term conviction take an optimistic view, assessing future potential. This forward-looking approach is precisely why strategic capital remains unshaken through choppy market environments.
Consider Silver, which holds a market cap of $3.953T, roughly three times larger than Bitcoin. The general consensus remains that Bitcoin will eventually flip Silver by market cap, an event that would imply a Bitcoin price of approximately $200k. While many view this as a conservative estimate, and many expected it to occur last cycle, continued global adoption and the ongoing transformation of Bitcoin into a neutral monetary asset make this target highly achievable over the coming years.
Stormrake Spotlight: Pax Gold (PAXG) ($4,330)
Stormrake Spotlight: Pax Gold (PAXG) ($4,330)
