Bitcoin’s Market Cap Could Surpass Gold, Says Binance CEO
Bitcoin’s price has been on a steady rise for three days. Traders are hopeful about a U.S.-China trade deal and possible Federal Reserve interest rate cuts.
Binance CEO Changpeng Zhao believes Bitcoin’s market cap will eventually surpass gold’s. However,this will take time due to the meaningful difference in their values.
Gold is currently the most valuable global asset, with a valuation of $30 trillion. Its price has surged from $2,600 in January to over $4,345 today. Analysts predict it could reach $5,000.
Gold’s rise is partly due to central banks, especially China, accumulating the metal. This is a response to U.S. policies and the country’s rising public debt, which has surpassed $37 trillion.
Bitcoin, on the other hand, has seen an 18% increase this year, bringing its market cap to over $2.2 trillion. It became the fastest-growing asset to cross the $1 trillion mark since its launch in 2009.
For Bitcoin’s market cap to surpass gold’s, it would need to rise to roughly $1.5 million per coin. This implies a gain of about 1,254% from its current price of near $110,700.
Such a move is possible, given Bitcoin’s past performance. The most compelling factor is the demand-supply dynamic. Demand continues to rise, as evidenced by strong ETF inflows. At the same time, Bitcoin’s exchange balances continue to decline, tightening circulating supply.
