Bitwise Asset Management projects that Bitcoin's price could soar to $242,391 if 5% of the capital currently invested in gold is reallocated to the cryptocurrency. This prediction underscores the significant market capitalization gap between gold, valued at over $16 trillion, and Bitcoin, which stands at over $2.2 trillion. A minor shift in investment from gold to Bitcoin could thus have a substantial impact on BTC's valuation.
In 2025, gold prices have surged by 58%, reaching $4,300 per ounce, fueled by central bank demand and U.S. Federal Reserve policies. Concurrently, Bitcoin has experienced a 63% increase over the past year, peaking at $126,000 in October before correcting to approximately $102,000. Bitwise, along with Digital Assets Hub Latam, suggests that macroeconomic factors, including potential Federal Reserve rate cuts and regulatory clarity, could enhance Bitcoin's attractiveness as a digital store of value.
Bitwise Predicts Bitcoin Could Reach $242,391 with Gold Capital Shift
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