Bitcoin price has a potential greater than 60x in the coming years from the currency $200 billion market valuation. This is according to a recent report released by Galaxy Digital. The document goes through Bitcoin’s potential as a store of value and how to add digital assets to our diversified portfolio.
Bitcoin Price Potential is Greater than 60x
The interest in Bitcoin and its adoption as a store of value could push the virtual currency to new highs. The report compares both Bitcoin and gold as two assets to store value. While gold has been working as such for thousands of years, Bitcoin still needs to prove it can achieve this status.
While Bitcoin has a market valuation of around $200 billion, this shows that it is far from the $12 trillion gold’s market capitalization. This is indeed less than 2% of gold’s market. The report explains that there is a large potential for Bitcoin to surge and eventually reach the same status as gold.
About it, the report explains:
“Gold’s market capitalization is currently over $12 trillion. Bitcoin’s value, on the other hand, is currently around $200 billion, less than 2% of the gold market. That presents a potential greater than 60x market expansion opportunity if Bitcoin grows to gold’s level as an alternative, digital store of value asset.”
It is worth taking into consideration that some companies such as MicroStrategy are already investing large sums of money in Bitcoin. The firm announced they have acquired a total of over $425 million worth of BTC in just a few months.
During the last year, Bitcoin has been traded very close to traditional financial markets. The year started with Bitcoin and stocks trading in tandem and falling once the Coronavirus crisis expanded in March this year. Since that moment, Bitcoin and the whole financial market started recovering.
A few weeks ago, Bitcoin and also the stock market fell once again. Bitcoin moved from above $12,000 down to under $10,000 for a brief period of time. The main question is whether there is going to be space for Bitcoin to continue the bull trend that it started after March this year.
At the time of writing this article, CoinMarketCap reports that Bitcoin price stands close to $10,680 and a market valuation of almost $200,000. This shows Bitcoin could have a lot of space to continue growing in the coming years.