CZ Predicts Bitcoin Will Eclipse Gold as Market Cap Gap Shrinks
Bitcoin's relentless rally has traditionalists sweating. The OG crypto now stares down gold's $12T market cap—and CZ says the flip is coming.
Gold bugs scoff, but the numbers don't lie. BTC's 2025 surge puts its market dominance at levels not seen since the 2021 bull run. Meanwhile, institutional inflows suggest Wall Street finally picked a side.
Will the boomer metal crumble under DeFi's pressure? One thing's certain: the 'digital gold' narrative just got its most credible endorsement yet. (Take that, Jamie Dimon.)
Will Bitcoin outcompete gold in 2025?
In the year to date, BTC locked in 61% in total gains, while gold stood at 60.7% as of October 20.
BTC also displaced silver, which briefly took the lead as the most rapidly expanding asset in the year to date. Silver only gained a small head start on BTC, though still depending on regional factors.
Bitcoin’s major disadvantage is that it is still not considered an official reserve. Government vaults are also quite small in comparison to gold reserves. Over time, however, BTC has served well to offset both USD and local currency risks.
Both BTC and gold track the growth of M2 money, meaning their nominal price does not always offset inflation. The assets are also trading with short-term anomalies, and may change direction over time.
Based on Polymarket data, the relationship of BTC and gold remains volatile. The odds of BTC outperforming gold by the end of 2025 are on the low side, but have recovered to around 25%.
Will BTC rally after gold’s peak?
Historically, gold peaks have also been followed by BTC rallies. Most notably, after the 2020 pandemic slump, BTC caught up with gold, shifting to the $60,000 range.
BTC has also closed the gap with gold at the end of 2024. Currently, BTC is lagging, but is once again expected to close the gap with gold, resulting in a higher price range.
The coin recently retested its long-term trendline against gold, but regained its overal momentum. It has expanded its price in terms of gold over the years, and may continue the correlation, according to analysts.
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