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 Bitcoin’s market capitalization to over $2.1 trillion. As a result, the market’s 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, Bitcoin’s 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, Bitget’s Managing Director on a roundtable discussion back in February, highlighting the transformative nature of the cryptocurrency market. Related Reading: Shiba Inu Bulls Roar To Life After Breakout—Next Price Targets With increasing institutional adoption, evolving regulations, and new real-world applications, Chen expressed optimism about Bitcoin’s future. “Bitcoin will definitely surpass gold in terms of market cap, at least for a while, maybe this year or in the upcoming few years,” she stated, suggesting that Bitcoin has the potential for another two to threefold increase in price. Historically seen as “digital gold,” Bitcoin’s 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. “In the early days, Bitcoin was much considered as digital gold. Right now, it’s still digital gold in my opinion, but now it’s more like a risky asset,” 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: Now that January’s high has been surpassed—and the 50 percent upside from April’s lows has been achieved—Bitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a favorable US regulatory environment. Related Reading: Litecoin Eyes $117.50 As Price Rebounds From Key Support – Analyst Trenchev also emphasized that the market’s still in the fourth year of Bitcoin’s price cycle, traditionally seen as a pivotal period following a halving event—when miner rewards are cut in half. Historically, this phase has led to significant price increases. “While macro uncertainty and the threat of further volatility remain, a target of $150,000 in 2025 is still very much on the cards,” 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.com
