Crypto investor Brian Kelly says Bitcoin’s (BTC) market cap could increase by a factor of 10 if investors start preferring the king crypto over gold.
In a new interview on CNBC’s Fast Money, the founder and CEO of digital asset investment firm BKCM say that he is bullish on Bitcoin for several reasons, including a possible endorsement of a Bitcoin exchange-traded fund (ETF) on the spot market.
“Another halving is planned in April. And I’m not one of those people who think the halving is the actual catalyst. But it’s one of those sentimental things that now all of a sudden you have a reduction in supply. Combine that with the fact that we have the Federal Reserve that has probably been done raising rates for a while now. If not, we don’t think they will go to the 10%. Maybe they’ll go to 5.5%.
And the second part of that is we now have these ETF registrations. So for the first time, just like with the gold ETF, you’re going to have retail investors, not that they couldn’t buy it before, but now registered investment advisors, who can assign your Morgan Stanley asset manager to this, and so That’s what gets the market excited made about this new ETF.”
The trader predicts that investors will start treating Bitcoin “like digital gold,” taking market share away from the precious metal, which could skyrocket Bitcoin’s market capitalization.
“I think this is the easiest way to think about it [Bitcoin] is digital gold. If you have a portfolio where you want to allocate some of it to gold, and let’s call that for inflation reasons, and you’re worried about the dollar or whatever your currency is, then you want to sort of hedge against that. So you could do gold or you could do Bitcoin. And I would say Bitcoin is a better use case than gold because I can’t use gold on the internet. I can use Bitcoin on the internet.
So just look at Bitcoin with a market cap of $700 billion right now. All gold ever mined is worth between $7 and $8 trillion. So Bitcoin can take some market share from gold, which I think is happening. Then the multiple comes back from there, why couldn’t it be 5x from here, why couldn’t it be 10x from here? Those are crazy big numbers, but when it starts taking market share, just like any other kind of company would, that’s what starts to drive up the market cap.”
Bitcoin is trading at $36,203 at the time of writing, down 3.5% in the past 24 hours.
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