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World’s largest banks lost 3x Bitcoin’s market cap during the pandemic

World's largest banks lost 3x Bitcoin's market cap during the pandemic

For the reason that outbreak of COVID-19, the world’s 14 largest banks have misplaced $635.33 billion in market capitalization. That is greater than 3 times the present market capitalization of Bitcoin (BTC) and nearly double the capitalization of all cryptocurrencies.

Market capitalization of the world’s greatest banks. Supply: Purchase 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 coming into the pandemic induced recession, six of the banks on the listing had a market cap increased than Bitcoin. Presently, solely two are larger — JPMorgan Chase and Financial institution of America.  The Industrial and Industrial Financial institution of China got here shut as nicely, and are presently in a tie with the cryptocurrency.

Banks’ losses throughout the pandemic. Supply: Purchase Shares.

Nevertheless, each single financial institution on the listing 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 misplaced an equal of Bitcoin’s market cap in a single quarter. In the meantime, Bitcoin has been gaining unprecedented adoption amongst conventional traders as mirrored by the expansion of Grayscale’s Bitcoin Belief. A publicly-traded firm just lately even made Bitcoin its reserve forex.

Although main banks are unlikely to vanish anytime quickly, they appear to be battling the redefinition of their worth proposition. The unfavorable outcomes they’ve skilled could have even been induced partly by the latest multi-trillion greenback stimuli from the central banks around the globe.

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