The US market is plagued with concern that President Donald Trump is under political pressure on top of the Fed, which could lead to the US central bank losing independence.
However, these tensions appear to have benefited Bitcoin and Gold, the world’s biggest cryptocurrencies. Bitcoin went over $90,000 today at a rally created after a long break. Meanwhile, Ounce Gold reached $3,500 for the first time in today’s history, once again at the time of writing, at $3,407.
In fact, there have been long been predictions that Bitcoin, also known as digital gold, could surpass the market value of gold. However, it appears that gold has slightly widened the gap at the massive gatherings we have experienced in recent months. BTC prices have fallen 14% over the past three months, while gold has risen 26%.
Looking at the data, we can see that Bitcoin’s total market value is currently at $1.8 trillion. The total market value of gold is currently $23.79 trillion. In a virtual environment where the total market value of gold remains constant, the BTC price must reach $1.19 million in Bitcoin to exceed the market value of gold.
A chart showing the ratio of BTC’s market capitalization to gold market capitalization over a long period.
Estimates show that the current annual supply of BTC is 0.83%, while the annual supply of gold is 1.72%.
*This is not investment advice.
