The broader cryptocurrency market is seeing a notable surge after the Federal Open Market Committee (FOMC) announced a 50 basis point interest rate cut.
The policy shift fueled a rapid recovery in major digital assets, with Bitcoin (BTC) trading above $62,000 and Ethereum (ETH), Solana (SOL) and XRP also seeing gains of between 1% and 4%.
As a result, the global cryptocurrency market capitalization reached approximately $2.24 trillion, reflecting renewed investor enthusiasm.
Bitcoin Could Represent 20% of Gold’s Market Cap
Recent price movements have sparked discussions among analysts about the possibility of further gains. Market participants are speculating that Bitcoin could be on its way to new all-time highs.
Dan Gambardello, founder of Crypto Capital Venture, argued According to Gambardello, the price of Bitcoin could reach $180,000 during this market cycle. Stressing that this projection is realistic, he pointed out that a price of $180,000 for Bitcoin would equate to a market cap of over $3.5 trillion, which would be only 20% of gold’s $17.35 trillion market cap.
Bitcoin’s performance against gold has been a notable trend this year, with the BTC/GC ratio rising from 20.5 at the start of 2024 to a peak of 34.08 in March. This represents a 66% increase in Bitcoin’s value relative to gold in the first quarter.
This comparison has intrigued investors, leading to discussions on social platforms about whether Bitcoin’s utility and adoption can match these valuation projections.
Long-term price targets
It’s also important to note that this bullish sentiment from Gambardello is not isolated. Investment strategist Lyn Alden also recently projected that Bitcoin could reach $1 million per coin in the next decade, citing growing adoption and its position as a top digital asset.
Alden’s forecast is consistent with similar projections from industry leaders who see Bitcoin reaching significant valuation milestones, though time frames vary.
This long-term outlook is reinforced by the accumulation of whale addresses, which CryptoQuant says have been constantly increasing their Bitcoin holdings for six consecutive days.
This accumulation by large-scale investors, particularly through custodial wallets, comes amid continued market volatility. Over the past three weeks, bitcoin has fluctuated between $52,546 and $60,000 before recently breaking above $62,000.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
