Bitcoin Could Surpass Gold’s Market Cap in 5-8 Years, Says Galaxy Digital CEO
Galaxy Digital founder and CEO Mike Novogratz is bullish on Bitcoin (BTC) as he predicts that it could match and even surpass gold’s market capitalization within the next five to eight years. This comes on the heels of Bitcoin’s record-breaking momentum in the market.
Novogratz’s optimistic projection was in response to a post by Alex Thorn, head of research at Galaxy, which pointed out that Bitcoin’s market cap has now reached 14% of gold’s $17.8 trillion value, marking a new all-time high.
Thorn’s analysis, supported by a chart illustrating Bitcoin’s increasing share of gold’s market cap, underscores the rapid growth trajectory of Bitcoin in comparison to the traditional store of value.
Bitcoin’s recent surge to a new all-time high of $108,000 on December 17 further solidified its position in the market, surpassing two-thirds of the $3.13 trillion worth of gold held by global central banks. This milestone coincided with the anticipation of a rate cut by the US Federal Reserve.
Federal Reserve Chair Jerome Powell acknowledged Bitcoin as a “digital version” of gold in recent remarks, although he cautioned that it remains a speculative asset and not a direct competitor to the US dollar. Powell emphasized that Bitcoin’s niche appeal does not fulfill the broader functions of a sovereign currency, such as facilitating payments.
Despite the distinctions, Bitcoin’s growing acceptance as a legitimate asset class is evident in the increasing investor interest. US-based Bitcoin exchange-traded funds (ETFs) have surpassed gold ETFs in total assets under management, with Bitcoin ETFs now holding $129.25 billion compared to gold’s $128.88 billion.
BlackRock’s iShares Bitcoin ETF (IBIT) has notably outperformed the iShares Gold ETF (IAU), a significant development given the latter’s longstanding presence in the market since 2005.
Novogratz’s confidence in Bitcoin’s potential to challenge gold’s supremacy as the dominant store of value reflects a broader sentiment among industry leaders. With institutional adoption on the rise, favorable market conditions, and Bitcoin’s growing recognition as “digital gold,” the cryptocurrency’s market cap is poised to reshape global asset valuation in the coming years.
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