The future price and valuation of Bitcoin is a hot topic of debate, with varying predictions from different camps. However, one sentiment is held by most, and that is the fact that the cryptocurrency will trade at a much higher valuation than it currently does. Skybridge Capital CEO Anthony Scaramucci shares this sentiment, predicting that the Bitcoin market cap will eventually reach half of the gold market cap.
Batting for Bitcoin to Capture 50% of the Gold Market Cap
Anthony Scaramucci has long been a supporter of Bitcoin and has been very vocal about his support for the coin. Once again, the CEO of Skybridge Capital has come out to reiterate his stance on Bitcoin and make a prediction on where he expects the price to go in the future.
Scaramucci told CNBC in a interview that he expects the price of Bitcoin to eventually reach $170,000. Not only that, he said he expects Bitcoin’s market cap to one day reach 50% of gold’s value.
The CEO explains that Bitcoin has seen a positive upside as more regulatory clarity has emerged around the digital asset, as well as the approval of several Spot Bitcoin ETFs. And it is the success of these Spot Bitcoin ETFs that drives Scaramucci’s belief that Bitcoin will reach half the value of gold.
He explains that it took the Gold ETF a year to reach $10 billion in inflows. However, in the case of Bitcoin, this happened within three months, meaning it took 25% of the time it took for gold to achieve this. Now that the halving is coming, Scaramucci explains that the supply will become even lower.
The CEO goes on to explain that he expects Bitcoin to become a store of value, something that will propel it as a competitor to gold. In this case, continued growth will eventually make gold approximately half of gold’s market capitalization.
Where will BTC trade at this valuation?
The current gold market cap is around $15.7 trillion and half of this would bring the Bitcoin market cap to a high $7.85 trillion. BTC’s current market cap is $1.4 trillion, with a price of $72,000 per coin. This means that a market cap of $7.85 trillion would make cryptocurrency trading much higher.
With a limited supply of 21 million coins, Bitcoin’s market cap of $7.85 trillion would bring the price per BTC to a whopping $378,000. Such an increase would represent a 500% increase over current price levels. And with Bitcoin controlling about half of the total cryptocurrency market cap, and assuming altcoins continue to grow with it, this could easily lead to the entire crypto market reaching a market cap of $14 trillion, increasing competition with gold.
However, Scaramucci doesn’t provide a timeline for when he expects this to happen and warns investors not to expect it anytime soon. “It won’t happen overnight, and there will be a lot of volatility,” Skybridge Capital’s CEO warned.
BTC price recovers above $72,000 | Source: BTCUSD on Tradingview.com
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