Bitcoin M-Cap Over $1.90T: How Its Surge Fuels Growth In Layer 1s Like Solana & Avalanche?

Around $96,958 is the current price of Bitcoin (BTC) as of May 1, 2025, a 3.17% gain over the previous day. It has a market value of around $1.93 trillion. Market dynamics, macroeconomic causes, including the falling value of the US dollar, and institutional investments from big firms like MicroStrategy are all attributes of the current spike in the price of Bitcoin. By 2025, a sizable portion of conventional financial institutions will have already embraced cryptocurrency; many have diversified beyond Bitcoin and Ethereum and allocated more than 5% of their assets to it.

The journey of Layer 1s like Solana and Avalanche has been greatly aided by Bitcoin's ascent, which has seen it soar near $100,000. For instance, Solana has had robust price performance and increasing DeFi and NFT adoption. Bitcoin continues to attract more investors and cash into the overall crypto ecosystem, whereas Avalanche has shown signs of recovery and is still appealing to developers and institutions.

According to CompaniesMarketCap, Bitcoin momentarily surpassed major technology companies like Amazon to take the fifth-largest asset in the world by market capitalization last week. On Wednesday, April 23, the entire market value of Bitcoin was $1.86 trillion compared to $1.837 trillion of Amazon. However, Bitcoin's achievement of reaching $100,000 is revolutionary for Main Street and Wall Street alike.

Should Bitcoin be regarded as a core asset by traditional investors? Based on an interview with Mr. Sumit Gupta, co-founder - CoinDCX let's discover the questions and answers below.

Bitcoin just flipped Amazon. Is the world finally waking up to decentralized value?

Decentralization, long viewed as a philosophical ideal, is now manifesting as a viable market framework. Bitcoin, as its most prominent embodiment, has transitioned from a speculative frontier asset to a globally recognized store of value and emerging macro hedge. Its market capitalization now exceeds that of silver, Meta, and Alphabet-entities historically emblematic of centralized value creation in the digital age.

This transformation is underpinned by several converging factors: increasing regulatory clarity in key jurisdictions, the formal entry of financial institutions via SEC-approved ETFs, and record-breaking corporate accumulation-with over 95,000 BTC added to public balance sheets globally in Q1 2025 alone. Such developments signal that Bitcoin is being reclassified-not merely as a digital commodity-but as a strategic, long-term asset.

To suggest that the world is only now "waking up" to decentralized value may, in fact, understate the depth of this transition. What we are witnessing is not a trend, but the early stages of a systemic reconfiguration-where decentralized assets like Bitcoin are no longer peripheral, but integral to global financial architecture.

Is it time for institutional investors to rethink their portfolio strategies? Should traditional investors start treating Bitcoin as a core asset?

Yes, as digital assets gain popularity, institutional investors should reconsider their portfolio strategy. In 2025, a significant number of traditional financial institutions will already be embracing crypto, with many allocating over 5% of assets to crypto and diversifying beyond Bitcoin and Ethereum. Crypto is now becoming a crucial part of contemporary institutional portfolios due to its increasing usage, clearer regulations in the West, and innovative investment vehicles.

CoinDCX has also witnessed a significant rise in HNI and institutional participation within the Indian crypto market.

Over the last six months, our platform has witnessed over 12% increase in user base, with a significant portion of new sign-ups being equity traders. These users are clearly drawn to the volatility and high-return potential of crypto markets-traits that differentiate digital assets from more traditional instruments.

What does this Bitcoin milestone mean for Wall Street - and Main Street?

Bitcoin's milestone of surpassing $100,000 is transformative for both Wall Street and Main Street. For Wall Street, the approval and rapid adoption of spot Bitcoin ETFs have driven unprecedented institutional participation, boosting liquidity and integrating Bitcoin into mainstream financial portfolios.

This maturation reduces volatility over time and signals Bitcoin's acceptance as a legitimate asset class. For Main Street, increased accessibility through ETFs and rising mainstream adoption empower everyday investors to participate in Bitcoin's growth, democratizing wealth creation opportunities. Overall, this milestone marks a new era, bridging traditional finance and digital assets and expanding financial inclusion.

Is Bitcoin now a must-have in every investor's portfolio?

Institutional adoption, including the launch of regulated Bitcoin ETFs by major financial firms and corporate treasury allocations, has bolstered its credibility and accessibility for investors. Despite inherent volatility, Bitcoin's resilience, growing market acceptance, and ongoing technological improvements make it a compelling long-term investment option.

However, its inclusion should be balanced with risk tolerance, typically suggested at a modest allocation (around 2% of a portfolio) to optimize diversification benefits without excessive exposure. Thus, while not mandatory, Bitcoin is increasingly considered a valuable and almost essential asset for modern portfolios seeking growth and diversification in 2025.

At this point, is not owning Bitcoin riskier than owning it?

Bitcoin, once seen as volatile and speculative, is now increasingly viewed as a long-term hedge against inflation and currency debasement, especially in unstable economies. With institutional adoption accelerating and regulatory clarity improving, long-term price projections above $500,000 are gaining credibility, contingent on continued global adoption and Bitcoin's programmed scarcity.

As corporate and institutional demand rises-evidenced by significant additions to treasuries in 2025-the risk of excluding Bitcoin from portfolios may now outweigh the risk of conservative participation. For Indian investors, this shift marks a pivotal moment: even modest Bitcoin exposure is becoming a strategic necessity, not mere speculation.

Is Bitcoin's performance making a stronger case than gold in modern portfolios?

Bitcoin's annualized growth rates have exceeded 200%, vastly outperforming gold, but with extreme volatility and drawdowns of over 80%. Gold, by contrast, offers stability and acts as a reliable hedge during market downturns, often holding or increasing value when equities fall.

For portfolio construction, combining both assets is recommended: gold provides stability and downside protection (5-15% allocation), while Bitcoin offers high growth and diversification benefits with a smaller allocation (3-5%). Dollar-cost averaging suits Bitcoin's volatility, while gold's steadiness allows for more flexible investment timing.

Has Bitcoin's climb hurt or helped the narrative for Layer 1s like Solana and Avalanche?

Bitcoin's climb has largely helped the narrative for Layer 1s like Solana and Avalanche rather than hurt it. As Bitcoin's price surges, it tends to draw broader investor attention and capital into the entire crypto ecosystem, often leading to increased interest and bullish sentiment for major Layer 1 blockchains. Solana, for example, has seen strong price performance and growing usage in DeFi and NFTs, with analysts predicting continued growth and resilience even as Bitcoin dominates headlines.

Similarly, Avalanche has shown signs of recovery and remains attractive to developers and institutions, with its fundamentals and ecosystem growth positioning it as a top Ethereum competitor. In summary, Bitcoin's rally acts as a rising tide that lifts leading Layer 1s, reinforcing their relevance and growth prospects within the market.

With BTC flipping Amazon, should investors double down-or diversify into emerging altcoins?

With Bitcoin surpassing Amazon to become the fifth-largest asset globally at over $1.8 trillion market cap, it clearly demonstrates strong institutional backing and growing investor confidence. For investors, this milestone affirms Bitcoin's status as a dominant, relatively mature asset in the crypto space, making it a compelling core holding.

However, while doubling down on Bitcoin can capitalize on its established market leadership and momentum, diversifying into emerging altcoins also offers exposure to innovative technologies and higher growth potential, albeit with greater risk. A balanced approach-maintaining a significant Bitcoin position for stability and selectively investing in promising altcoins for diversification-aligns best with prudent portfolio management in this evolving market landscape.

Bitcoin vs. Ethereum: One just flipped Amazon-could the other flip Google?

Bitcoin, seen as "digital gold," is valued for its scarcity and role as a store of value, recently surpassing Amazon's market cap and dominating the crypto market. Ethereum, powering decentralized finance and Web3, is still behind Google in market cap but benefits from ongoing upgrades like proof-of-stake and layer-2 scaling, supporting future growth.

While Bitcoin offers stability and mainstream acceptance, Ethereum's versatility drives innovation. Both are shaping digital finance, so a balanced portfolio approach-leveraging Bitcoin's reliability and Ethereum's technological potential-offers exposure to the strengths of each asset in this evolving landscape.

Is it smarter to hold Bitcoin for safety or explore higher upside with smaller-cap altcoins?

A cautious and strategic approach suggests that holding Bitcoin offers greater safety due to its established market dominance, fixed supply, and recognition as a digital store of value, making it less volatile compared to smaller-cap altcoins. Bitcoin's stability and widespread adoption position it as a reliable asset, especially for investors prioritizing the preservation of capital.

Conversely, smaller-cap altcoins present higher upside potential through innovation and rapid growth but come with significantly greater risk and price volatility. Therefore, a balanced strategy is advisable: maintain a core position in Bitcoin for safety and stability while selectively exploring promising altcoins to capture higher returns, always with thorough research and mindful risk management. This approach leverages Bitcoin's security and altcoins' growth opportunities to optimize portfolio resilience and upside.