Bitcoin captured only 2% of gold market capitalization, suggest new data

If Bitcoin captures 10% of the gold market capitalization, each bitcoin would be worth US$154,000, according to CryptoQuant.

Bitcoin (BTC) still has a long way to go to capture 10% of the market capitalization of gold, different from what the old data said, reveals new studies.

Highlighting some Bitcoin numbers on January 12th, Ki Young Ju, CEO of on-chain analysis company CryptoQuant, said cryptomoeda took much less of the gold’s market value than some studies had previously stated.

Bitcoin figures cool

As the price of Bitcoin grew by the end of 2020 and reached historic highs of $42,000, a frequent narrative said that investors were trading gold for BTC, and that Bitcoin had therefore taken about 7% of the market capitalization of the precious metal of $10 trillion .

Using the realized market capitalization, which calculates market capitalization in a different and more accurate way, the actual „theft“ of gold is actually 2%, says Ki.

Unlike market capitalization, the metric measures the price at which each bitcoin last moved and excludes currencies in centralized custody exchanges, thus excluding speculative movements. The total is also kept lower by the long lost BTC, which last moved at probably much lower prices than today.

„People said that $BTC held 7% of the market value of gold. No, it doesn’t. There are uninvited Bitcoins, inaccessible and lost. Based on the market capitalization realized, this percentage is only 2%“, he tweeted next to a chart.

„If the digital gold replaces 10% of the market capitalization of $XAU, the price of $BTC would be $ 154k“.

BTC Market Capitalization Done Chart.

Bitcoin’s realized market capitalization was $227 billion on Wednesday, while its standard market capitalization was $645 billion.
Bitcoin performance beats gold without difficulties

Despite its undeniably slower progress, Bitcoin is still doing extremely well against gold, which failed to recover its BTC losses, even as BTC/USD fell to near $30,000 on Monday.

Bitcoin bought 18.6 ounces of the precious metal at the time of this publication, according to Buy Bitcoin Worldwide data.

Gold launches big gains with Bitcoin collapse. pic.twitter.com/sqNiWBDJIF
– O₿iWan (@ObiWanKenoBit) January 12, 2021

Bitcoin’s correlation with gold tended to zero this week, a sharp drop from the highs seen in October.
90-day return correlation chart for Bitcoin:

Digital Assets Data

Previously, commentators noted that Bitcoin has already transferred all of the $10 trillion market capitalization of gold in its 12-year history.

As the Cointelegraph reported, however, the criticism from gold fans remains, with gold defender Peter Schiff casting doubt on Bitcoin’s status as a safe haven and the interest of institutional investors in it.

„Bitcoin traded close to $42,000 on Friday and close to $30,000 on Monday. An asset that drops 28% in a weekend is not a safe haven, a value reserve or a viable hedge against #inflation“, he tweeted this week.

„If you want to bet on #Bitcoin, buy Bitcoin. But if you want to protect yourself against inflation, buy #ouro. ”