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At its current price per unit, the market valuation of the decentralized cryptocurrency Bitcoin exceeded the overall value of the International Monetary Fund (IMF) Special Drawing Rights market (SDR 281 billion). Since the massive drop in the global market on March 12, bitcoin has risen more than 323% from the crypto asset’s $ 3,600 low in 2020.
The price of bitcoin has risen tremendously in 2020. Especially after the global market crash that wiped out almost all commodities and stocks under the sun. Even then, the price of bitcoin (BTC) struggled in mid-March as prices dropped to a low of $ 3,600 on “Black Thursday”.
At press time, with over 18.5 million BTC in circulation today, the crypto asset’s market capitalization is greater than the Special Drawing Rights (SDR) market created by the International Monetary Fund (IMF).
The market valuation of Bitcoin currently hovers above $ 285.5 billion, and IMF data shows that SDR 204.2 billion (equivalent to approximately $ 281 billion) is allocated to members. SDR is considered a global reserve asset and was developed to be an additional international reserve asset.
The SDR derives its value from a basket of five different fiat currencies including; the British pound, the US dollar, the euro, the Japanese yen and the Chinese renminbi.
Of course, with more than a quarter of a trillion dollars in value, BTC’s market cap has a long way to go in reaching the multi-billion dollar market cap of gold. At the time of publication, the market valuation of gold is around $ 9 trillion dollars.
The entire market capitalization of BTC must exceed 3,500% from the current market valuation of $ 285 billion today. However, in October 2010, the price of a single bitcoin was around $ 0.12 per coin, and since then the value has increased by more than 12.7 million percent.
Bitcoin’s market capitalization had already overtaken the IMF’s market for special drawing rights in 2017. But the price dropped and bitcoin saw a three-year period that many traders considered a bear market.
No one is sure how long it will stay above the IMF SDR this time around, but many traders and analysts are expecting much higher BTC prices from here. Meanwhile, the entire cryptocurrency market cap of all 7,000+ digital assets is approaching half a trillion ($ 426 billion). Bitcoin (BTC) is currently trading for $ 15.613 per coin at 6pm EST on Thursday night.
What do you think of bitcoin (BTC) surpassing the IMF market valuation of special drawing rights? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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