The price of gold rose to a new all-time high, and its market capitalization also set a new milestone. Analysts say Bitcoin could be next, even though it has had a nasty fall lately.
Gold’s market capitalization hit a record high of $30 trillion on Thursday, as the price rose to a new all-time high of $4,357 per ounce.
The groundbreaking new high means that gold’s market capitalization is now 14.5 times that of Bitcoin, which is approximately $2.1 trillion. It is also 1.5 times the market capitalization of the world’s seven largest tech companies: Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta and Tesla. They have a combined market cap of about $20 trillion.
Unlike company stock market capitalization, which is based on shares issued, gold’s market capitalization is calculated by calculating the total value of all gold ever mined; however, it is impossible to know the exact amount.
The price of gold has skyrocketed this year and Bitcoin can also benefit
Gold has risen 64% since Jan. 1 as investors flock to the store of value amid concerns about a weaker dollar, geopolitical tensions and trade tariffs.
However, many analysts believe that capital will soon find new opportunities and flow into Bitcoin, also known as digital gold, as the gold market cools.
“Gold has increased its market cap by more than $300 billion todaysaid crypto analyst Sykodelic on Thursday.It grew by the entire Bitcoin market cap in one week. I don’t understand why most people don’t see that once gold stagnates, BTC will explode.”
“If Bitcoin can ease its correlation with US stocks [a feszült geopolitikai háttér közepette]especially if the gold flow slows down, this may be the next trading opportunity.” –noted and venture investor Joe Consorti.
Meanwhile, analyst “Merlijn de Handelaar”. observedthat the global M2 money supply is rising, gold is rising, but Bitcoin is sleeping and on the sidelines for four months now.
“This gap will never last long, liquidity will always carry risks and the catch-up will be brutal.” he said.
Despite the current decline, there is no need to panic. You have to wait for the markets to calm down and for the frenzy to take over the deliberate action guided by common sense. Bitcoin will reach new heights as a store of value.
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