The market capitalization of Bitcoin is now hovering around $736 billion. On-chain metrics calculate the current market cap of the leading digital asset is 7% than of gold.
Famed people in the traditional finance community have started comparing Bitcoin with gold. The comparison between both hedge assets is on merit as the top digital coin has performed extraordinary since 2021.
Global Crypto Market Cap Surpasses $1 Trillion
Crypto lovers believe Bitcoin would overturn gold in the market cap. The recent progress in the digital space has endorsed this narrative a lot. Currently, the overall market capitalization of the global crypto markets is standing at $1.08 trillion. The next goal of the flagship cryptocurrency is to attain a $1 trillion figure.
The correlation between gold and Bitcoin remained highest in October 2020. But soon after that, both decouple from each other, and correlation reached the zero point. There is always a debate on how the top digital cryptocurrency would beat gold in the long term on social media and other blogging sites. JP Morgan, one of the largest US investment banks, wrote down that Bitcoin has built-in stamina to outperform other assets and compete with gold bullion in market cap.
Some crypto proponents have even claimed that investment flow has been initiated from old traditional hedge assets to new digital hedge assets. Some asset management companies have dumped gold holdings in order to add Bitcoin to their portfolios. The trend has initiated, and we may see more insurance companies entering the crypto industry.
The exponential increase in the Bitcoin market cap is due to institutional money inflow, retail interest, and corporations’ entry that want to hedge against coming inflation.
The stimulus package is coming soon in the United Stated that could further strengthen the position of Bitcoin in the financial world. According to some market analysts, gold’s price value will further decline in front of the top digital currency.
The institutional money inflow started when investment firm MicroStrategy bought BTC worth more than $400 million. After MicroStrategy, many investment companies, including pension and insurance firms, made significant investments in the top digital coin.
As the price value is exploding, the retail customers are also accumulating around Bitcoin. After claiming the all-time high value of $40,000, the flagship digital currency market cap has surged above $735 billion. According to crypto experts, the market cap of Bitcoin would reach $1 trillion soon.