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On May 21, Bitcoin (BTC) achieved a remarkable milestone, reaching a new all-time high (ATH) near the $110,000 mark. This surge was fueled by significant buying pressure, elevating Bitcoinโs market capitalization to over $2.1 trillion.ย
As a result, the marketโs leading cryptocurrency has now positioned itself among the most valuable assets globally, ranking fifth in market capitalization and surpassing major firms like Amazon and Google.
Will Bitcoin Surpass Gold?
According to the Companies Market Cap web page, Bitcoinโs price surge pushed its market capitalization to approximately $2.182 trillion. Currently, Bitcoin trails only behind tech giants Apple, NVIDIA, and Microsoft, as well as the traditional safe-haven asset, gold, which holds a staggering capitalization of over $22 trillion.
Rob Nelson from The Street reported insights from Gracy Chen Chen, Bitgetโs Managing Director on a roundtable discussion back in February, highlighting the transformative nature of the cryptocurrency market.
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With increasing institutional adoption, evolving regulations, and new real-world applications, Chen expressed optimism about Bitcoinโs future. โBitcoin will definitely surpass gold in terms of market cap, at least for a while, maybe this year or in the upcoming few years,โ she stated, suggesting that Bitcoin has the potential for another two to threefold increase in price.
Historically seen as โdigital gold,โ Bitcoinโs role has evolved significantly. Initially perceived as an anti-risk asset, it has become more correlated with traditional financial markets, especially following the anticipated approval of spot Bitcoin ETFs in 2024.ย
โIn the early days, Bitcoin was much considered as digital gold. Right now, itโs still digital gold in my opinion, but now itโs more like a risky asset,โ Chen explained, noting its increased correlation with the US stock market.
Analysts Predict Potential Surge To $150,000
Positive regulatory developments in the US have further bolstered investor sentiment, fueling expectations for price discovery phases for BTC. Antoni Trenchev, co-founder of the digital asset trading platform Nexo, commented on the current market landscape:ย
Now that Januaryโs high has been surpassedโand the 50 percent upside from Aprilโs lows has been achievedโBitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a favorable US regulatory environment.
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Trenchev also emphasized that the marketโs still in the fourth year of Bitcoinโs price cycle, traditionally seen as a pivotal period following a halving eventโwhen miner rewards are cut in half.ย
Historically, this phase has led to significant price increases. โWhile macro uncertainty and the threat of further volatility remain, a target of $150,000 in 2025 is still very much on the cards,โ he concluded.
At the time of writing, BTC is trading at $109,570, which is up by 3% and 25% on the 24-hour and 30-day time frames, respectively.
Featured image from DALL-E, chart from TradingView.comย
