#BTC
Analyst Warns of Bitcoin Market Cap Double-Counting in Traditional Metrics
Crypto analyst Willy Woo has highlighted a potential flaw in how Bitcoin’s market capitalization is calculated, noting that BTC holdings are sometimes double-counted in traditional financial assessments.
The Double-Counting Issue
Bitcoin’s market cap is typically calculated based on its circulating supply and price.
However, when institutional holders like MicroStrategy (MSTR)—which holds over 226,000 BTC—are factored into stock valuations, Bitcoin’s value gets counted twice:
Directly, as part of Bitcoin’s total market cap.
Indirectly, through the valuation of MSTR’s stock, which derives significant value from its BTC treasury.
Why This Matters
Overestimating BTC’s true market influence could distort risk assessments in traditional finance.
Investors may unknowingly double-expose themselves to Bitcoin through both direct holdings and BTC-heavy equities.
Woo’s observation underscores the need for clearer metrics as Bitcoin becomes further integrated into corporate balance sheets and traditional markets.