Bitcoin Trading Volume Surpasses Mining Companies’ Market Cap

The daily trading volume of Bitcoin (BTC) now regularly exceeds the total market capitalization of public BTC mining companies, raising concerns that they may be overvalued.

On October 21, spot Bitcoin trading volume reached $37 billion, which is consistent with the trend of $20-$40 billion throughout 2024.

At the same time, open interest in Bitcoin derivatives reached an all-time high of about $40 billion, according to Coinglass data.

Analysts say while some believe public shares of Bitcoin mining companies are overvalued, market forces suggest those valuations could increase.

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The entire public Bitcoin mining sector, which collectively produces nearly 30% of the cryptocurrency’s supply, has a total market capitalization of about $28 billion.

The fact that the daily trading volume of Bitcoin exceeds the total market capitalization of these mining companies underscores the serious imbalance in the market.

Alexander Stefanov