Bitcoin price rose for the third consecutive day as traders remained optimistic about a trade deal between the U.S. and China and potential Federal Reserve interest rate cuts.
Summary
- Changpeng Zhao believes that Bitcoin market cap can flip gold.
- Gold price has jumped to over $4,600 and analysts expect more gains.
- Bitcoin price needs to hit $1.5 million to flip gold’s $30 trillion valuation.
Bitcoin (BTC) climbed to $111,000 for the first time since Oct. 16 and now sits 7.25% above its lowest point this year. It remains in a correction after falling about 12% from its yearly high.
CZ believes Bitcoin market cap will flip gold
Binance founder Changpeng Zhao predicted that Bitcoin’s market capitalization will overtake that of gold. He noted, however, that the process will take time given the substantial gap between the two.
Data compiled by Companies by Market Cap shows that gold is the most valuable asset globally with a valuation of $30 trillion. Its valuation has jumped this year as gold price has soared from $2,600 in January to $4,345 today, and Goldman Sachs analysts believe it can hit $5,000.
Gold has climbed as central banks, especially China, continued accumulating the metal, partly in response to Donald Trump’s policies. Buyers are also reacting to the ongoing surge in U.S. public debt, which has surpassed $37 trillion.
Bitcoin, by contrast, is up 18% this year, bringing its market cap to over $2.2 trillion. It became the fastest-growing asset to cross the $1 trillion mark since its launch in 2009.
Bitcoin’s market cap can surpass gold’s if it outperforms by a large margin, as it has in the past. While gold is beating Bitcoin this year, Bitcoin has done better over longer time horizons.
For example, gold has risen 128% in the past five years, while Bitcoin is up 750%+ over the same period. This performance has helped BTC narrow the valuation gap with gold.
Bitcoin price if it flips gold in market cap
Assuming gold’s market cap remains around $30 trillion and Bitcoin’s supply is 19.93 million, BTC would need to rise to roughly $1.5 million per coin. With Bitcoin currently near $110,700, that implies a gain of about 1,254% to reach $1.5 million.
Such a move is possible: Bitcoin has posted gains exceeding 1.25 million% over the past decade. The target is also below Ark Invest’s $2.4 million long-term projection.
Bitcoin has multiple bullish catalysts that could push it toward $1.5 million in the long run. The most compelling is the fundamental demand–supply dynamic.
Demand continues to rise, as evidenced by strong ETF inflows, with some analysts predicting central bank purchases by 2030. At the same time, Bitcoin’s exchange balances continue to decline, tightening circulating supply.
