Galaxy Digital founder and CEO Mike Novogratz believes Bitcoin (BTC) could match and eventually surpass gold’s market capitalization within five to eight years, following the crypto’s record-breaking momentum.
Novogratz made the prediction in response to a post by Alex Thorn, head of research at Galaxy, which highlighted that Bitcoin’s market cap has reached 14% of gold’s $17.8 trillion value — a new all-time high.
Thorn’s analysis, accompanied by a chart showing Bitcoin’s increasing share of gold’s market cap, emphasized Bitcoin’s accelerating growth.
The milestone coincides with Bitcoin’s surge to a new lifetime peak of $108,000 on Dec. 17, ahead of the US Federal Reserve’s anticipated rate cut. Bitcoin’s current market cap of $2.13 trillion now exceeds two-thirds of the $3.13 trillion in gold held by global central banks.
Federal Reserve chair Jerome Powell has recently admitted that Bitcoin is an a “digital version”In recent remarks, he spoke of the gold. He added, however, that gold remains a speculation and disregarded its rivalry with the US Dollar.
Powell stated that although Bitcoin may have a niche appeal it is not a currency with the same functions as other sovereign currencies, like facilitating payment or acting as an intermediary. Powell’s comments show that policymakers are increasingly recognizing Bitcoin as an asset class with a distinct role from traditional currencies, even though its appeal is niche.
The flagship crypto’s rise also signals a significant shift in investor sentiment. US-based Bitcoin ETFs recently surpassed gold ETFs in total assets under management, with Bitcoin ETFs reaching $129.25 billion compared to gold’s $128.88 billion.
BlackRock’s iShares Bitcoin ETF (IBIT) notably outperformed the iShares Gold ETF (IAU), which has been a mainstay since 2005.
Novogratz’s remarks reflect growing confidence among industry leaders in Bitcoin’s potential to challenge gold’s status as the dominant store of value. With institutional adoption rising, favorable market conditions, and Bitcoin’s increasing acceptance as “digital gold,” the flagship crypto’s market cap appears poised to reshape global asset valuation in the years ahead.
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