The post Galaxy CEO predicts Bitcoin market cap will overtake gold in 5 to 8 years appeared on BitcoinEthereumNews.com.

Galaxy Digital founder and CEO Mike Novogratz believes Bitcoin (BTC) could match and eventually surpass gold’s market capitalization within five to eight years, following the crypto’s record-breaking momentum. Novogratz made the prediction in response to a post by Alex Thorn, head of research at Galaxy, which highlighted that Bitcoin’s market cap has reached 14% of gold’s $17.8 trillion value — a new all-time high. Thorn’s analysis, accompanied by a chart showing Bitcoin’s increasing share of gold’s market cap, emphasized Bitcoin’s accelerating growth. The milestone coincides with Bitcoin’s surge to a new lifetime peak of $108,000 on Dec. 17, ahead of the US Federal Reserve’s anticipated rate cut. Bitcoin’s current market cap of $2.13 trillion now exceeds two-thirds of the $3.13 trillion in gold held by global central banks. Federal Reserve Chair Jerome Powell recently acknowledged that Bitcoin is a “digital version” of gold during recent remarks. However, he added that it remains a speculative asset and dismissed its competition with the US dollar. Powell clarified that while Bitcoin has a niche appeal, it does not fulfill the broader functions of a sovereign currency, such as facilitating payments or serving as a medium of exchange. His comments reflect the growing recognition of Bitcoin among policymakers as a legitimate asset class, even if its role remains distinct from traditional currencies. The flagship crypto’s rise also signals a significant shift in investor sentiment. US-based Bitcoin ETFs recently surpassed gold ETFs in total assets under management, with Bitcoin ETFs reaching $129.25 billion compared to gold’s $128.88 billion. BlackRock’s iShares Bitcoin ETF (IBIT) notably outperformed the iShares Gold ETF (IAU), which has been a mainstay since 2005. Novogratz’s remarks reflect growing confidence among industry leaders in Bitcoin’s potential to challenge gold’s status as the dominant store of value. With institutional adoption rising, favorable market conditions,…

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Filed under: News - @ December 18, 2024 12:17 am