Gold has long reigned as the king of safe-haven assets in global finance. But what if one day it's replaced by Bitcoin? This question is gaining traction after the BTC/XAU ratio (Bitcoin versus gold) surged by 40% over the past four months, sparking renewed debate on whether Bitcoin could truly surpass gold’s market cap.
🔹 Bitcoin is currently trading at around $115,316, while gold's market capitalization is estimated at $22.58 trillion. By comparison, Bitcoin's market value is approximately $2.3 trillion.
📈 How High Would Bitcoin Need to Go to Surpass Gold?
According to basic math, with a current supply of 19.89 million BTC, the price of a single Bitcoin would need to soar to approximately $1,200,000 in order to match gold’s market capitalization. That’s nearly 10 times its current price.
While this may sound far-fetched, renowned analyst Plan B points out that Bitcoin’s stock-to-flow ratio is already roughly double that of gold—yet it remains significantly undervalued by comparison. He believes this suggests that BTC may be dramatically underpriced.
🪙 Even Gold Miners Are Buying Bitcoin
Even more intriguing, some traditional players from the gold sector are pivoting toward crypto. For instance, Bluebird, a gold mining company, recently announced its plan to sell gold and buy Bitcoin.
And even long-time skeptics like Peter Schiff—a staunch gold advocate—have conceded Bitcoin's impressive performance in recent months. He recently admitted that “BTC is a better asset to hold,” a rare admission considering his previous stance.
📉 Short-Term Outlook: Bearish Break Before the Next Rally?
In the near term, Bitcoin is experiencing a slight decline. After weeks of trading in a tight range, BTC broke downward and fell below its 50-day simple moving average.
Technical indicators like the Awesome Oscillator (AO) show negative momentum, suggesting that bears remain in control. Bitcoin is now testing former support as resistance, and a successful breakout could trigger a return of bullish momentum.
🏁 Summary: Gold Has a Serious Challenger
📊 The BTC/XAU ratio has strengthened by 40%, signaling Bitcoin’s rising momentum versus gold. Still, the road to $1.2 million per coin will be long—possibly spanning years.
✅ However, growing institutional interest, technological superiority, and a passionate community may help Bitcoin become the digital successor to gold.
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