Key Takeaways:
- Bitcoin’s market cap hits $2.06T, edging out Amazon’s $2.04T in May second week.
- 344,000+ new Bitcoin wallets added in 24 hours as price retests $103,000 (Santiment).
- Arizona passes bill to explore Bitcoin as a state treasury reserve asset.
Bitcoin’s Ascent: From Digital Cash to Global Reserve Contender
Bitcoin (BTC) consolidates its status as a macroeconomic heavyweight, surpassing Amazon’s market capitalization to become the fifth-largest asset globally. With a valuation of $2.06 trillion, Bitcoin now trails only gold, Microsoft, Apple, and Nvidia – a milestone underscoring its evolution from “internet money” to an institutional-grade store of value.
The Numbers Behind the Rise
- Bitcoin price: $103,993, at the time of writing, and up +605 (+0.58%) change in futures markets.
- Market cap gap: Bitcoin now $16B ahead of Amazon, per 8MarketCap.
- Wallet growth: 344,000 new addresses created May 7-8, the highest single-day surge since 2021 (Santiment X post).
It seems like Bitcoin’s rally isn’t speculative; it’s driven by real-world adoption. Entities are accumulating, not trading.
Geopolitical Tailwinds: Arizona’s Bitcoin Reserve Bill
Bitcoin’s legitimacy received a boost as Arizona lawmakers passed a bill authorizing the state treasury to hold BTC in its reserves. While details remain sparse, the move aligns with El Salvador’s 2021 precedent and signals growing political acceptance.
States are recognizing Bitcoin’s role as a hedge against fiat debasement. Arizona could spark a domino effect.
Why Institutions Are Piling In
Bitcoin’s market cap leap reflects three key drivers:
- ETF inflows: U.S. spot Bitcoin ETFs continuously increasing in May 2025 (Farside Investors).
- Halving effects: Reduced supply growth post-April 2024 halving tightened market liquidity.
- Macro uncertainty: Weak dollar performance and escalating U.S.-China trade tensions boosted safe-haven demand.
Notably, Bitcoin’s rise coincided with $342M in crypto market liquidations, primarily short positions in 24 hours, betting against the rally.
What This Means for Crypto’s Future
Bitcoin’s market cap milestone is symbolic but significant. By outpacing a tech giant like Amazon, it challenges traditional valuation metrics and reinforces arguments for BTC as “digital gold.”
However, risks remain. Regulatory scrutiny persists, with the SEC delaying other ETF decisions and targeting staking services. Yet, Bitcoin’s market structure is now too large to ignore.
Can Bitcoin Crack the Top Three?
With around a $20T gap separating Bitcoin from gold, overtaking the precious metal remains a long-term prospect. But recent momentum suggests BTC could soon surpass Nvidia’s $2.8T valuation, securing fourth place.
Will Bitcoin’s institutionalization outpace geopolitical headwinds? For now, the fifth spot is just another stepping stone.
