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

World’s largest banks misplaced 3x Bitcoin’s market cap through 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 thrice the present market capitalization of Bitcoin (BTC) and virtually double the capitalization of all cryptocurrencies.

Market capitalization of the world’s largest banks. Supply: Purchase Shares.

The place to begin for this knowledge 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 listing had a market cap greater than Bitcoin. Presently, solely two are greater — JPMorgan Chase and Financial institution of America.  The Industrial and Business Financial institution of China got here shut as effectively, and are at present in a tie with the cryptocurrency.

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

Nonetheless, 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 buyers as mirrored by the expansion of Grayscale’s Bitcoin Belief. A publicly-traded firm lately even made Bitcoin its reserve foreign money.

Although main banks are unlikely to vanish anytime quickly, they appear to be scuffling with the redefinition of their worth proposition. The unfavourable outcomes they’ve skilled could have even been triggered partly by the current multi-trillion greenback stimuli from the central banks all over the world.