Bitcoin News Today: Bitcoin Could Hit $189,000 by Capturing 2% of Global Liquidity and 5% of Gold Market Cap

Bitcoin could potentially rise to $189,000 if it captures just a small portion of global liquidity and gold’s market capitalization, according to analysts from CoinShares and Mitrade. With the global M2 money supply reaching over $127 trillion and gold’s market cap at nearly $24 trillion, the firm applies a Total Addressable Market (TAM) model to estimate Bitcoin’s future value. If Bitcoin were to take 2% of global liquidity and 5% of gold’s value, its price would theoretically hit $189,000 [1][2]. This projection does not assume a complete takeover of the financial system but rather a gradual and modest integration into existing monetary structures [1].

Currently, Bitcoin is trading at around $113,897, according to CoinGecko [3]. Over the past month, the price has increased by 5.6%, slightly outperforming the broader cryptocurrency market, which has fallen by 10.2% in the same period [3]. This divergence highlights the mixed sentiment in the crypto space, with Bitcoin benefiting from macroeconomic tailwinds and growing institutional interest, while altcoins face headwinds.

The TAM model used by CoinShares is a top-down approach commonly employed in startup valuations. It evaluates the largest financial pools—such as cash, deposits, and gold—and estimates the market share a new entrant could capture. In this case, Bitcoin’s potential price is derived from its ability to claim even a small percentage of these massive pools [1]. The firm bases its analysis on data from the World Gold Council, Trading Economics, and Glassnode, ensuring the figures remain up to date [1].

Despite the bullish projection, analysts caution that regulatory uncertainty, technological evolution, and macroeconomic shifts could hinder Bitcoin’s path to $189,000. For example, changes in central bank policies or interest rates could alter global liquidity overnight. Similarly, fluctuations in gold prices due to miner activity or central bank sales could affect the TAM calculation [1]. The timeline for Bitcoin to reach the projected price also depends on the gradual buildup of institutional confidence, clearer regulatory frameworks, and improved infrastructure for large-scale crypto adoption [2].

Over the past week, Bitcoin’s price has fluctuated between $113,235 and $119,419, reflecting the market’s sensitivity to macroeconomic news and investor behavior [3]. With a 24-hour trading volume of $29.96 billion and a circulating supply of 19.9 million coins, the market shows active participation but lacks the sustained momentum needed for a breakout move [3].

The $189,000 price target should be viewed as a theoretical benchmark rather than a guaranteed outcome. It is based on assumptions about Bitcoin’s market share and does not account for all real-world variables. Analysts agree that actual price movements will depend on a mix of policy changes, technological innovation, and investor sentiment [1]. For now, the TAM model serves as a compelling framework for understanding the potential trajectory of the world’s largest cryptocurrency.

Source:

[1] Mitrade, [https://www.mitrade.com/insights/news/live-news/article-3-1008009-20250803](https://www.mitrade.com/insights/news/live-news/article-3-1008009-20250803)

[2] NewsBTC, [https://www.newsbtc.com/news/bitcoin/bitcoin-set-to-hit-189k-as-global-liquidity-tops-127-t/](https://www.newsbtc.com/news/bitcoin/bitcoin-set-to-hit-189k-as-global-liquidity-tops-127-t/)

[3] CoinGecko, [https://www.coingecko.com/en/coins/bitcoin/usd](https://www.coingecko.com/en/coins/bitcoin/usd)