Bitcoin price trades at $115,316 today, having gained 40% against gold since April. This situation has prompted fresh chatter about BTC catching up to gold’s $22.58 trillion market cap. Given Bitcoin’s current $2.3 trillion market cap, a leap to $22 trillion would be quite a feat, but if it did happen, what would the BTC price be?
Can BTC Price Break Gold’s $22 Trillion Market Cap?
Bitcoin has carried the name “digital gold” for years. Because of this, BTC faithfuls believe that it could one day snatch gold’s position to become a store of value. This argument has only grown when looking at the gains made by the BTC/XAU ratio.
Since April, Bitcoin has made strides against gold. This is seen in the BTC/XAU ratio, which has increased by more than 40%. While this does not immediately show a flip, it signals that Bitcoin is gaining some strength against gold.
For Bitcoin to surpass gold, it would need to break gold’s $22.59 trillion market cap first. With the current supply of around 19.89 million BTC, that means Bitcoin’s price would need to hit nearly $1.2 million per coin
Therefore, the most straightforward answer to how high the Bitcoin price would have to rise to break gold’s market cap is $1,200,000, which is about ten times more than the current price. While this might seem like a stretch, analyst Plan B has weighed in, saying it is possible.
In an X post, he argued that Bitcoin’s stock-to-flow ratio of around 120 is twice that of gold. This is despite gold being ten times worth more than Bitcoin. Based on this, Plan B believes the BTC price is 10x undervalued.
Interestingly, even some gold miners have begun looking closely at Bitcoin. Last month. CoinGape reported that gold miner Bluebird was planning to sell gold and buy Bitcoin.
At the same time, staunch gold supporters like Peter Schiff have not shied away from admitting to Bitcoin’s impressive gains for the last two months. Schiff recently said that BTC was a better asset to hold, a rare admission based on his past takes.
BTC Short-Term Forecast as 3-Week Consolidation Breaks
This argument for how high BTC would have to reach to pass gold is part of a long-term Bitcoin price forecast that could take years to materialize. However, in the shorter timeframe, more pain is expected.
After Bitcoin dropped today, it dropped out of the tight range it had been trading in for three weeks. It also fell below the 50-day SMA, making the situation less favorable for short-term price moves.
The AO bars are a sign that bears are not relenting after they dropped to the negative side. Still BTC price is testing the range’s support as resistance, and if it does break through, the momentum may continue in favor of bullish traders.
In summary, the Bitcoin price has a massive gap to close for it to reach gold. Doing so could take years, even with its growing appeal among institutions. Meanwhile, before this happens, Bitcoin may experience some pullback in the coming weeks.
Frequently Asked Questions (FAQs)
Bitcoin can break gold’s market cap as it starts receiving more retail and institutional interest.
BTC would have to reach $1,200,000 for it to overtake gold, which is a rally that could take years before it happens.
The short-term BTC forecast suggests that a drop to $111,000 might happen after a bearish breakout from three weeks of consolidation.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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