Bitcoin (BTC) may soon surpass gold’s market capitalization, according to Galaxy Digital founder and CEO Mike Novogratz. He predicts that within the next five to eight years, Bitcoin could match and even exceed the $17.8 trillion value of gold.
Novogratz’s forecast comes as Bitcoin’s market cap reaches 14% of gold’s total value, marking a new all-time high. This milestone coincides with Bitcoin hitting a record high of $108,000 on December 17, as investors anticipate a rate cut by the US Federal Reserve.
Recent analysis by Alex Thorn, head of research at Galaxy, shows Bitcoin’s increasing share of gold’s market cap, highlighting the crypto’s rapid growth. Bitcoin’s current market cap of $2.13 trillion now surpasses two-thirds of the $3.13 trillion in gold held by global central banks.
Federal Reserve Chair Jerome Powell has acknowledged Bitcoin as a “digital version” of gold, though he views it as a speculative asset rather than a direct competitor to the US dollar. Powell emphasized that Bitcoin, while gaining recognition as a legitimate asset class, does not fulfill the functions of a sovereign currency.
The rise of Bitcoin also reflects a shift in investor sentiment, with US-based Bitcoin ETFs now holding more assets under management than gold ETFs. BlackRock’s iShares Bitcoin ETF (IBIT) has outperformed the iShares Gold ETF (IAU), signaling growing confidence in Bitcoin’s potential to challenge gold’s status as a store of value.
With institutional adoption on the rise and Bitcoin gaining acceptance as “digital gold,” industry leaders like Novogratz believe that the crypto’s market cap will continue to reshape global asset valuation in the coming years.
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