Bitcoin News Today: Bitcoin Could Surge 65% if It Captures 2% of Global Liquidity and 5% of Gold Market Cap

Digital asset investment firm CoinShares has released a report forecasting that Bitcoin could experience a 65% price increase if it captures just 2% of the global M2 liquidity and 5% of gold’s market capitalization. The firm’s analysis is grounded in the total addressable market (TAM) model, which estimates Bitcoin’s potential market share if it is adopted as a store of value or alternative asset. According to the report, if Bitcoin were to secure 2% of the $127.3 trillion global M2 liquidity and 5% of the $23.9 trillion gold market cap, its price could rise to as high as $189,000 per coin [1].

The report emphasizes that Bitcoin does not need to replace traditional financial systems to deliver substantial value. Even a small percentage of these massive markets being allocated to Bitcoin could be enough to significantly boost its price. This potential is attributed to Bitcoin’s evolving role as a more useful form of money and its growing acceptance among institutional investors and financial institutions [1].

Currently, Bitcoin is trading at $114,388, reflecting a 1.9% increase over the last 24 hours and a 6.0% rise over the past 30 days. Despite this upward trend, Bitcoin has underperformed the broader cryptocurrency market, which has seen a 10.7% decline in the same period [3]. The cryptocurrency’s circulating supply remains at 19,901,337 coins, with a fully diluted valuation of $2.28 trillion and a 24-hour trading volume of $26.77 billion, indicating sustained interest from traders and investors [3].

The report from CoinShares underscores a broader shift in investor sentiment, with Bitcoin increasingly viewed as an alternative to traditional assets like gold. As global liquidity reaches unprecedented levels, the potential for Bitcoin to capture a meaningful share of these markets is gaining attention in financial circles. However, the realization of this potential depends on factors such as regulatory developments, institutional adoption, and broader market conditions.

Sources:

[1] Benzinga (https://www.benzinga.com/crypto/cryptocurrency/25/08/46817622/analysts-say-127-3-trillion-liquidity-surge-could-be-rocket-fuel-for-bitcoin)

[2] Benzinga (https://www.benzinga.com/recent)

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