Will bitcoin “overtake” silver soon? In terms of market capitalization, this is a realistic scenario.
Bitcoin vs. silver
Silver has had great days. The precious metal's valuation has risen to just over $32. As a result, the market capitalization of $1.83 trillion is now $500 billion larger than Bitcoin's market capitalization, which is currently $1.31 trillion.
So is bitcoin in a losing position and will remain an asset below precious metals? NO. This is enough for the cryptocurrency to rise by 40% to $93,000. Then it will surpass silver. Such a price jump does not seem unrealistic. After all, we are probably halfway through the bull market and we still have a year of growth ahead of us.
Analyst Dylan LeClair believes that the price of bitcoin will increase in the few months after the halving event.
Galaxy Digital founder and CEO Mike Novogratz shares a similar view. He claims that bitcoin will remain in a “consolidation phase” in the range of $55,000 to $75,000, but will start to rise in price by the end of the second quarter of the year.
In turn, Bitfinex exchange analysts predict that BTC may cost as much as USD 150,000 in the next 12 months.
Bitcoin is currently the ninth largest asset in the world. In front of him are: gold, Microsoft, Apple, Nvidia, Google, Saudi Aramco, Amazon and silver.
What's happening on the precious metals market?
Gold also strengthened its position, increasing by 22.4% since February 13. Its current market capitalization is USD 16.4 trillion.
Many people wonder what is behind these increases. The answer seems simple – it is driven by China's purchases. But this raises another question: why does the central bank of the Middle Kingdom make such large purchases?
Beijing is certainly preparing for intensified competition with the US. Gold will help the country protect the yuan and also prepare for potential economic sanctions from Washington.
All this fits into the current geopolitical situation. Many experts believe that history will accelerate when Donald Trump becomes US president. It may pursue a tougher policy towards China and launch a new package of sanctions. Maybe smaller gold investors are also playing to this effect – to warm up the international situation.
Note, however, that the fact that silver prices have also started to rise significantly is not a good signal for investors. This means that the gold bull market may be slowly coming to an end. Silver starts to become more expensive when the market starts considering gold as expensive.
