bitcoin's future price and valuation is a hot topic of debate, with different predictions from different sides. However, one sentiment remains for most and that is the fact that the cryptocurrency will trade at a much higher valuation than it currently has. Skybridge Capital CEO Anthony Scaramucci shares this sentiment and predicts that bitcoin's market cap will eventually reach half the market cap of gold.
Fighting for bitcoin to Capture 50% of Gold Market Cap
Anthony Scaramucci has long been a supporter of bitcoin and has expressed his support for the currency. Once again, the CEO of Skybridge Capital came forward to reiterate his stance on bitcoin, giving a prediction of where he expects the price to go in the future.
Scaramucci told CNBC in a x.com/CNBCClosingBell/status/1776346772828234177″ rel=”nofollow”>interview who expects the price of bitcoin to eventually reach $170,000. Not only that, he said that he expects bitcoin's market capitalization to one day reach 50% of gold's valuation.
The CEO explains that bitcoin has seen a positive upside as there has been greater regulatory clarity around the digital asset, as well as the approval of several bitcoin Spot ETFs. And it is the success of these bitcoin Spot ETFs that drives Scaramucci's belief that bitcoin will reach half the valuation of gold.
He explains that it took a year for the Gold ETF to reach $10 billion in inflows. However, in the case of bitcoin, it has done it in three months, meaning it took 25% of the time it took gold to achieve it. Then, with the halving on the way, Scaramucci explains that supply will decrease even more.
The CEO further explains that he hopes bitcoin will become a store of value, something that will boost it as a competitor to gold. In this case, its continued growth will allow it to reach around half the market capitalization of gold.
Where will btc be traded at this valuation?
Gold's current market cap stands at approximately $15.7 trillion and half of this would put bitcoin's market cap at a high of $7.85 trillion. The current market capitalization of btc is $1.4 trillion, with a price of $72,000 per coin. This means that a market capitalization of $7.85 trillion would make cryptocurrency trading much larger.
With a limited supply of 21 million coins, bitcoin's market cap of $7.85 trillion would put the price per btc at a whopping $378,000. Such an increase would represent a 500% increase from current price levels. And then, with bitcoin controlling around half of the total cryptocurrency market cap and assuming altcoins continue to grow along with it, this could easily see the entire cryptocurrency market reach a market cap of $14 trillion, strengthening the competition with gold.
However, Scaramucci doesn't give a timeline for when he expects this to happen and warns investors not to expect it anytime soon. “This won't happen overnight and there will be a lot of volatility,” the CEO of Skybridge Capital warned.
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