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The future price and valuation of Bitcoin is a hot topic of debate, with varying predictions from different camps. One sentiment is maintained by most, though, and that is the fact that the cryptocurrency is going to trade at a much higher valuation than it is currently. Skybridge Capital CEO Anthony Scaramucci shares this sentiment, predicting that the Bitcoin market cap will eventually reach half of the gold market cap.
Batting For Bitcoin To Capture 50% Of Gold Market Cap
Anthony Scaramucci has long been a proponent of Bitcoin and has been very vocal about his support for the coin. Once again, the Skybridge Capital CEO has come forward to reiterate his stance on Bitcoin, giving a prediction for where he expects the price to go in the future.
Scaramucci told CNBC in an interview that he expects the price of Bitcoin to eventually touch $170,000. Not only that, he said that he expects that the Bitcoin market cap will someday reach 50% of the gold valuation.
The CEO explains that Bitcoin has seen a positive upside as there has been more regulatory clarity surrounding the digital asset, as well as the approval of various Spot Bitcoin ETFs. And it is the success of these Spot Bitcoin ETFs that is driving Scaramucci’s belief that Bitcoin will reach half of gold’s valuation.
He explains that it took the Gold ETF a year to reach $10 billion in inflows. However, in the case of Bitcoin, it has done it in three months, meaning it took 25% of the time it took gold to achieve this. Then with the halving on the way, Scaramucci explains that supply is going to get even lower.
The CEO further explains that he expects Bitcoin to become a store of value, something that will push it up as a competitor for gold. In this case, its continuous growth will see it eventually around half of gold’s market cap.
Where Will BTC Trade At This Valuation?
The current gold market cap lies at approximately $15.7 trillion market cap and half of this would put the Bitcoin market cap at a high $7.85 trillion. The current BTC market cap is at $1.4 trillion, with a price of $72,000 per coin. This means that a market cap of $7.85 trillion would see the cryptocurrency trade much higher.
With a capped supply of 21 million coins, Bitcoin’s market cap of $7.85 trillion would put the price per BTC at a whopping $378,000. Such an increase would represent a 500% increase from the current price levels. And then, with Bitcoin controlling around half of the total crypto market cap and assuming altcoins continue to grow alongside it, this could easily see the entire crypto market reach a $14 trillion market cap, strengthening the competition with gold.
However, Scaramucci does not give a timeline for when he expects this to happen and he cautions investors to not expect it soon. “It’s not going to happen overnight, and there will be a lot of volatility,” the Skybridge Capital CEO warned.
Featured image from Leadership News, chart from Tradingview.com
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