How could XRP price react if Bitcoin surpasses gold’s market cap as predicted by Binance co-founder Changpeng Zhao?
While Bitcoin (BTC) and the rest of the crypto market have faced prevalent uncertainties over the past two weeks, gold has been on an upward push, hitting new highs and proving why it has long been the go-to asset for investors looking to hedge against bearish macroeconomic conditions.
Changpeng Zhao Expects Bitcoin to Surpass Gold
Specifically, as BTC relinquished multiple support levels, including the pivotal $110,000 mark, gold soared to a new all-time high above $4,300 last week. This rally helped it achieve a $30 trillion market cap, becoming the first asset in the world to do so.
After a brief pullback at the close of last week, gold soared again on Monday, Oct. 10, reaching a new ATH of $4,381. Today, the precious metal changes hands at $4,334 per ounce, boasting a market cap of $30.3 trillion at press time.
While Bitcoin has struggled, Binance founder and former CEO Changpeng “CZ” Zhao believes the firstborn crypto would soon come for gold’s crown as the largest asset in the world. However, this would mark an extensive journey for Bitcoin. As a result, CZ confessed that he is not sure when this would materialize. According to him, it may take some time, but it will certainly happen.
Notably, with its current valuation sitting at $2.14 trillion, Bitcoin is over 14x smaller than gold despite being the largest crypto asset by a mile. For Bitcoin to surpass gold, its market cap would need to grow by 1,315% to the $30.3 trillion mark. Considering its circulating supply of 19.93 million tokens, this would translate to a Bitcoin price of $1.52 million per token.
Possible XRP Price if This Happens
Interestingly, if Bitcoin ever surpassed gold’s market cap, the impact could spill into the broader crypto market. Specifically, altcoins like XRP could see comparable rallies to new highs due to the close price correlation they share with Bitcoin.
For context, data from CoinMarketCap confirms that XRP and Bitcoin have moved alongside each other over the past month with slight deviations during the market crash. This shows how much XRP could follow in Bitcoin’s footsteps if the firstborn crypto hit $1.52 million to claim a $30.3 trillion market cap.
Notably, with the current valuation of $2.14 trillion, Bitcoin currently boasts a market dominance of around 59.62%, as the broader crypto market cap sits at $3.61 trillion. If BTC maintains this dominance when its market cap reaches $30.3 trillion, the total crypto market cap would have risen to $50.84 trillion.
Meanwhile, XRP currently has a market dominance of 4.03%, as its market cap sits at $145.59 billion. If XRP maintains its 4.03% dominance when the broader crypto market cap hits $50.84 trillion, XRP’s market cap would rise to $2.04 trillion. Considering its circulating supply of 60 billion tokens, the $2.04 trillion valuation translates to a price of $34 per XRP.
However, it is not always this straightforward. Notably, even if Bitcoin does surpass gold, the rate at which the broader crypto market would grow remains uncertain. In addition, there is no guarantee XRP will rise at a comparable rate.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
