A top analyst at investment giant Fidelity thinks Bitcoin (BTC) is poised to take market share from gold.
Jurrien Timmer, Director of Global Macro at Fidelity, shares a graph on the social media platform X that examines the value of ‘monetary gold’.
The term refers to the gold that is explicitly held by central banks and private investors as a monetary asset and not used for jewelry or industrial purposes.
“While this is an inexact science, based on data published by the World Gold Council, I suspect that the share of monetary gold is approximately 40% of total surface gold.
Based on the calculations outlined in my previous discussions, I estimate that Bitcoin will eventually capture about a quarter of the monetary gold market. At 40%, monetary gold is currently worth about $6 trillion, while Bitcoin is worth $1 trillion.”
A quarter of $6 trillion is a market cap of $1.5 trillion, which equates to a price per Bitcoin of about $76,000. However, so does Timmer assumes that by the time BTC reaches that level of gold’s market share, the precious metal’s value will be “much higher,” suggesting its estimated market cap for Bitcoin will exceed $1.5 trillion.
Bitcoin is trading at $56,306, up over 9.30% in the past 24 hours.
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Generated image: Midjourney