Analysts predicted that Bitcoin (BTC) market capitalization will reach $1.5 trillion due to a surge in spot exchange-traded funds (ETFs) such as Blackrock and a surge in trading volume for the top 10 cryptocurrency assets. Fidelity’s Jurrien Timmer predicts that Bitcoin will soon account for 25% of the non-industrial gold market.
Institutions and analysts are optimistic that the surge in XRP, ETH, and BTC, combined with institutional interest in ETFs, will boost capitalization of the cryptocurrency market by at least $500 billion.
Why Bitcoin Market Capitalization Is Rising
This week Elon Musk tacitly approved Bitcoin as a true currency in response to Warren Buffett’s 2016 statement. He said Buffett said in 2016 that time, not money, is useful to him.
Musk responded, ‘Time is currency,’ echoing the thoughts of anonymous writer Gigi, who said that Bitcoin block height is a measure of time. Musk’s tweet comes amid heated speculation about the future of Bitcoin. The recent surge in the prices of XRP, ETH, and BTC has increased the cryptocurrency market cap to over $2 trillion.
“Today it is a time-measuring device that is once again transforming our civilization. The truly central machine of the modern information age is the watch, not the computer. And this watch is Bitcoin,” Gigi wrote.
Read more: What is market capitalization? Why is it important in cryptocurrency?
Prominent analyst Kevin Svenson said Bitcoin could double depending on how closely its price tracks recent trend lines. Svenson noted that through on-chain analysis, Bitcoin price will likely double its so-called ‘base 3’ value following the parabolic cryptocurrency trading pattern seen every cycle. Earlier this year, the asset price reached $45,000 in Base 3, meaning a $90,000 price is possible.
How the BlackRock Spot Bitcoin ETF Fooled Companies
Institutions that had shied away from Bitcoin are now embracing it, while some are staying away. JPMorgan, whose CEO called Bitcoin his pet rock, recently upgraded shares of US cryptocurrency exchange Coinbase to neutral, arguing that Bitcoin’s rally has proven sustainable after the US Securities and Exchange Commission approved a spot ETF. I did. Jurrien Timmer, global macro director at Fidelity Investments, recently said: presented an optimistic outlook Bitcoin is taking market share of so-called numismatic gold, i.e. gold that is not used for jewelry or manufacturing.
“Based on the calculations described in the previous thread, we estimate that Bitcoin will eventually account for approximately a quarter of the fiat gold market. At 40%, fiat gold is now worth about $6 trillion, while Bitcoin is worth $1 trillion,” Timmer said.
Investment advisory firm Carson Group recently loaded four out of ten Bitcoin ETFs, including Fidelity. Fidelity and BlackRock’s Bitcoin ETF is the largest, with BlackRock becoming the fifth-largest ETF among all asset classes.
Read more: What is a Bitcoin ETF?
But Buffett, one of the world’s most famous and successful investors, remains unconvinced. Last year, he told investors at Berkshire Hathaway’s shareholder meeting that the value of Bitcoin was zero.
His remarks were similar to recent criticism of the European Union (EU). They said in a recent announcement that Bitcoin cannot generate cash flow and investors cannot view it as a commodity. BeInCrypto asked Berkshire Hathaway for its views on Bitcoin, but did not hear back at press time.
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