Analysts expect Bitcoin's (BTC) market cap to reach $1.5 trillion, based on spot exchange-traded funds (ETF) from BlackRock and others, as well as the trading volume of the top 10 crypto assets solid rising. Fidelity's Jurrien Timmer predicts that Bitcoin will soon capture 25% of the non-industrial gold market.
Institutions and analysts are optimistic that the rise in XRP, ETH and BTC coupled with ETF-driven interest from institutions will see the crypto market increase its capitalization by at least $500 billion.
Why Bitcoin Market Cap Is Rising
This week, Elon Musk implicitly endorsed Bitcoin as a real currency in response to a 2016 statement by Warren Buffett. Buffett said in 2016 that time, not money, was useful to him.
Musk responded with “Time is currency,” echoing the thinking of an anonymous author, Gigi, who said that the Bitcoin block height is a measure of time. Musk's tweet comes amid feverish speculation about the future of Bitcoin. The recent surge in XRP, ETH and BTC prices has pushed the cryptocurrencies market cap to over $2 trillion.
“Today it is once again a time measuring device that is changing our civilization. A watch, not a computer, is the true key machine of the modern information age. And that watch is Bitcoin,” Gigi wrote.
Read more: What is market capitalization? Why is it important in crypto?
Bitcoin market cap | Source: TradingView
Renowned analyst Kevin Svenson said Bitcoin could double depending on how closely its price follows a current trendline. Using on-chain analysis, Svenson found that Bitcoin's price will double by a so-called “base-3” value, according to the parabolic crypto trading patterns observed each cycle. Earlier this year, the asset's price reached $45,000 at base 3, meaning a price of $90,000 is possible.
How the BlackRock Spot Bitcoin ETF convinced companies
Institutions that have stayed away from Bitcoin are now embracing it, some at a distance. JPMorgan, whose CEO called Bitcoin a pet, recently upgraded U.S. crypto exchange Coinbase's stock to “neutral,” arguing that Bitcoin's rally following the U.S. Securities and Exchange Commission's approval of spot ETFs has proven sustainable. Jurrien Timmer, director of global macro at Fidelity Investments, recently expressed optimism that Bitcoin will capture the market share of so-called monetary gold, that is, gold that is not used for jewelry or manufacturing.
“Based on the calculations presented in my previous threads, I estimate that Bitcoin will ultimately capture about a quarter of the monetary gold market. At 40%, monetary gold is currently worth around $6 trillion, while Bitcoin is worth $1 trillion,” Timmer said.
Investment advisory firm Carson Group recently onboarded four of the 10 Bitcoin ETFs, including Fidelity's. Bitcoin ETFs from Fidelity and BlackRock were the largest, with BlackRock becoming the fifth-largest ETF across all asset classes.
Read more: What is a Bitcoin ETF?
But Buffett, one of the world's most famous and successful investors, is still not convinced. Last year, he told investors at a Berkshire Hathaway shareholders meeting that Bitcoin had no value.
His comments were similar to those of a recent criticism of the European Union. They said in a recent press release that Bitcoin cannot generate cash flow and investors cannot view it as a commodity either. BeInCrypto asked Berkshire Hathaway for her opinion on Bitcoin but had not received a response at press time.
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