Bitcoin’s recent bull run has had a profound impact on its market. The world’s biggest cryptocurrency now boasts a market cap above the $1 trillion line. This came as a result of this massive bull run dragging in various institutional clients that want an in on the action. With this $1 trillion market cap, Bitcoin has officially garnered a tenth of the world’s mined gold market cap.
Gaining Equal to 10% Gold Market In 10 Years Alone
Gold.org’s data shows that the total market cap for the world’s favorite precious metal stands at around $10 trillion in total. At the time of writing, an investor can opt for the cheaper option and buy gold at $1,800 apiece, with Bitcoin boasting a spectacular price of about $53,180 at the time of writing. In other words, you would need a kilogram of gold to buy a single Bitcoin (and some change).
With the massive spike in price, it’s rather expected that the anonymous crypto transaction volume has seen a spike as well. A mysterious transaction of 4,501 BTC, or a paltry amount of more than $250 million moved to an unknown wallet from one of Coinbase’s wallets.
This seems to be a trend. Coinbase has seen a whopping 17,700 BTC leave the exchange, worth a total of more than $1 billion. One of the highlights of this is a 2,292 BTC transaction that’s worth around $100 million currently having been moved out of the exchange into an unknown wallet.
Brilliant Strategies Not Working As Intended
To top it all off, institutional players are getting into Bitcoin, as well. These entities are buying into Bitcoin in a bid to protect themselves from the USD, which has started to weaken ever since the Fed had the brilliant idea of printing incredible amounts of money and pretending it’s all still worth the same.
Some of the key highlights of these entities is Tesla and Microstrategy. Microstrategy had long since made headlines about its significant crypto holdings. Tesla, upon seeing how well Microstrategy was doing, opted to buy $1.5 billion in Bitcoin all in one go. This, of course, sent the market skyrocketing once more.
Bitcoin Slowly Settling As Crypto Gold
Many an individual has claimed that Bitcoin was the new digital gold, while others fought against such an idea. Now, however, it’s getting harder and harder for the latter side to really have ground to stand on.
Ray Dalio stands as Bridgewater Associates’ founder, and has gone on record recently to declare Bitcoin to be a gold-like alternative. He explained that Bitcoin and other assets like it have managed to develop into these alternative gold assets throughout the past ten years. He cited various similarities, such as serving as a store of value and having a finite supply.