Fidelity Investments’ Jurrien Timmer predicts that Bitcoin’s market capitalization could skyrocket if it takes over a quarter of gold’s market share. According to on-chain analyst Kevin Svenson, the price of Bitcoin can rise to $90,000, based on trends seen in recent cycles. Recent Bitcoin price rises have caused previously skeptical institutions, including Berkshire Hathaway, to legitimize the BTC asset.
Analysts predict that Bitcoin’s market capitalization will reach $1.5 trillion, amid the rise of spot exchange-traded funds (ETFs) from BlackRock and others, as well as the trading volume of the top 10 crypto assets. Fidelity’s Jurrien Timmer predicts that Bitcoin will soon corner 25% of the non-industrial gold market.
Institutions and analysts have become bullish that surges in XRP, ETH, and BTC, along with ETF-driven interest from institutions, will see the cryptocurrency market increase its capitalization by at least $500 billion.
Why Bitcoin Market Cap Is Rising
This week, Elon Musk implicitly endorsed Bitcoin as a true currency in response to a 2016 statement by Warren Buffett. Buffett said in 2016 that time was useful to him, not money.
Musk responded with “time is currency,” echoing the reflections of an anonymous writer, Gigi, who said that the height of Bitcoin blocks is a measure of time. Musk’s tweet comes amid feverish speculation about the future of Bitcoin.
The recent price rallies of XRP, ETH, and BTC have increased the cryptocurrency market capitalization to over $2 trillion. Gigi explained the following:
“Today, it is again a timekeeping device that is transforming our civilization. A watch, not computers, is the true key-machine of the modern information age. And this watch is Bitcoin.”
Renowned analyst Kevin Svenson said Bitcoin could double based on how closely its price has followed a recent trend line. Svenson noted through on-chain analysis that the price of Bitcoin will double a value called “Base 3” in accordance with the parabolic cryptocurrency trading patterns observed in each cycle. Earlier this year, the asset’s price reached $45,000 in Base 3, meaning a price of $90,000 is possible.
How BlackRock Spot Bitcoin ETF Convinced Companies?
Institutions that stayed away from Bitcoin are now adopting it, some remotely. JPMorgan, whose CEO called Bitcoin a thorn in the side, raised shares of the Coinbase exchange to neutral. He argued that Bitcoin’s rally after the US Securities and Exchange Commission approved ETFs proved to be sustainable.
Jurrien Timmer, head of global macroeconomics at Fidelity Investments, was recently bullish. He did so about the possibility of Bitcoin taking over the market share of so-called monetary gold. The above, because gold that is not used in jewelry or manufacturing:
“Based on the calculations presented in my previous articles, I estimate that Bitcoin will eventually take over a quarter of the monetary gold market. At 40%, monetary gold is currently worth around $6 trillion, while Bitcoin is worth $1 trillion.”
Investment advisory firm Carson Group recently added four of the 10 Bitcoin ETFs, including Fidelity’s. Fidelity and BlackRock’s Bitcoin ETFs have been the largest. Additionally, BlackRock has become the fifth largest ETF among all asset classes.
Buffett, one of the most famous and successful investors in the world, remains unconvinced. Last year, he told investors at a Berkshire Hathaway shareholder meeting that Bitcoin had zero value.
His comments were similar to those of a recent critic of the European Union. In a recent statement they stated that Bitcoin cannot generate cash flow, nor can investors consider it a commodity.
By Audy Castaneda
