Bitcoin (BTC) has much further to go to suck away even 10% of gold’s market cap than old data claims, a popular indicator reveals.
Highlighting numbers from Bitcoin’s realized cap on Jan. 12, Ki Young Ju, CEO of on-chain analytics resource CryptoQuant, said that the cryptocurrency had taken far less of gold’s market cap than previously claimed.
Realized cap cools Bitcoin numbers game
As Bitcoin grew in price towards the end of 2020 and hit all-time highs of $42,000 last week, a narrative appeared that investors were swapping gold for BTC, and that Bitcoin had thus taken around 7% of the precious metal’s market cap of $10 trillion.
Using realized cap, which calculates market cap in a different, more precise manner, the real “theft” from gold actually stands at 2%, says Ki.
Unlike market cap, the metric measures the price at which each bitcoin last moved, and excludes coins on centralized custodial exchanges, thus excluding speculative movements. The total