Bitcoin on Track to Surpass Gold Market Capitalization, Says Galaxy Digital CEO
Galaxy Digital founder and CEO Mike Novogratz predicts that Bitcoin (BTC) could potentially match and even surpass the market capitalization of gold within the next five to eight years, as the cryptocurrency continues to break records.
Bitcoin Closing in on Gold’s Market Cap
Novogratz’s forecast comes in response to a report by Alex Thorn, head of research at Galaxy Digital, revealing that Bitcoin’s market cap now stands at 14% of gold’s $17.8 trillion value, marking a new all-time high.
Thorn’s analysis, supported by a chart illustrating Bitcoin’s growing share of the gold market cap, underscores the rapid growth of the cryptocurrency.
Bitcoin’s Milestone Achievements
Bitcoin recently reached a new all-time high of $108,000 on Dec. 17, just before the anticipated rate cut by the US Federal Reserve. The cryptocurrency’s current market cap of $2.13 trillion now surpasses two-thirds of the $3.13 trillion worth of gold held by central banks worldwide.
Recognition from Federal Reserve Chair
Federal Reserve Chair Jerome Powell acknowledged Bitcoin as a “digital version” of gold in a recent statement. However, he emphasized that Bitcoin remains a speculative asset and is not a direct competitor to the US dollar.
Powell clarified that while Bitcoin has its appeal, it does not fulfill the essential functions of a sovereign currency like facilitating payments or serving as a medium of exchange. This recognition signals a shift in perception towards Bitcoin as a legitimate asset class among policymakers.
Bitcoin ETFs Surpass Gold ETFs
US-based Bitcoin ETFs have surpassed gold ETFs in total assets under management, with Bitcoin ETFs holding $129.25 billion compared to gold’s $128.88 billion. BlackRock’s iShares Bitcoin ETF (IBIT) has outperformed the iShares Gold ETF (IAU) which has been established since 2005.
Growing Confidence in Bitcoin
Novogratz’s optimism reflects a growing belief among industry leaders in Bitcoin’s potential to challenge gold as the leading store of value. With increasing institutional adoption, favorable market conditions, and the acceptance of Bitcoin as “digital gold,” the cryptocurrency’s market cap is set to reshape global asset valuation in the years ahead.
