The broader crypto market is witnessing a notable surge after the Federal Open Market Committee (FOMC) announced a 50 basis point reduction in interest rates.
This policy shift fueled a swift rally across key digital assets, with Bitcoin (BTC) trading above $62,000 and Ethereum (ETH), Solana (SOL), and XRP also experiencing gains between 1% and 4%.
As a result, the global cryptocurrency market capitalization reached approximately $2.24 trillion, reflecting renewed investor enthusiasm.
Bitcoin Could Claim 20% of Gold Market Cap
The recent price movements have sparked discussions among analysts about the potential for further gains. Market participants speculate that Bitcoin could be on track to hit new all-time highs.
Dan Gambardello, founder of Crypto Capital Venture, argued that Bitcoin could reach $180,000 in this market cycle. Stressing his view that the projection is realistic, Gambardello pointed out that a $180K price point for Bitcoin would equate to a market cap exceeding $3.5 trillion, which would be just 20% of gold’s $17.35 trillion market cap.
Bitcoin’s performance against gold has been a notable trend this year, with the BTC/GC ratio climbing from 20.5 at the start of 2024 to a peak of 34.08 in March. This marks a 66% increase in Bitcoin’s value relative to gold in the first quarter.
This comparison has intrigued investors, leading to discussions on social platforms about whether Bitcoin’s utility and adoption can match these valuation projections.
Long-Term Price Targets
It is also important to note that this bullish sentiment by Gambardello is not isolated. Investment strategist Lyn Alden has also recently projected that Bitcoin could reach $1 million per coin within the next decade, citing rising adoption and its position as a leading digital asset.
Alden’s forecast aligns with similar projections from industry leaders who see Bitcoin achieving significant valuation milestones, although timelines vary.
This long-term outlook is bolstered by accumulating whale addresses, which CryptoQuant reported have been consistently increasing their Bitcoin holdings for six consecutive days.
This accumulation by large-scale investors, particularly through custody wallets, comes amid ongoing market volatility. Over the past three weeks, Bitcoin has fluctuated between $52,546 and $60,000 before the recent breakout above $62K.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
