Is Bitcoin becoming the ‘Google’ of crypto as BTC market cap nears new milestone?

Holger Zschaepitz, a market analyst at Welt, emphasised that Bitcoin (BTC) is nearing the valuation of Google, as it heads towards $1.5 trillion in market capitalization.

Currently, as of April 17, the market cap of Bitcoin is hovering at round $1.12 trillion as the total valuation of the crypto market stays comfortably above $2 trillion.

What is the similarity between Bitcoin and Google?

The similarity between Bitcoin and Google that Zschaepitz identified is that each have dominance of their respective sectors.

Bitcoin vs. Google market cap. Source: Bloomberg, Holger Zschaepitz

Bitcoin has the strongest community impact in the cryptocurrency market, accounting for greater than 51% of the international cryptocurrency market.

Google has dominance over the search engine market and has an enormous share of the video-sharing and streaming sector with its possession of YouTube.

Zschaepitz wrote:

“The Exponential Age: Thanks to community results, the worth of #Bitcoin is rising and w/$1.159tn has nearly reached the inventory market worth of a traditional community share #Google which is value $1.5tn.”

Whether Bitcoin’s dominance over the cryptocurrency market could be sustained over the long run stays in query, on account of the rising valuation of Ethereum and layer-one blockchain networks.

However, the main distinction between Bitcoin and the relaxation of the market is that there’s clear institutional demand for BTC as a retailer of worth on account of its unequalled blockchain network computing power and subsequently, safety and trustlessness.

Hence, traders typically view Bitcoin as a hedge towards inflation and the de facto reserve cryptocurrency.

In January, JPMorgan strategists wrote that Bitcoin may rise to as excessive as $146,000 as it competes towards gold as a retailer of worth.

The strategists said:

“This long run upside based mostly on an equalization of the market cap of bitcoin to that of gold for funding functions is conditional on the volatility of bitcoin converging to that of gold over the long run. The purpose is that, for many institutional traders, the volatility of every class issues in phrases of portfolio threat administration and the larger the volatility of an asset class, the larger the threat capital consumed by this asset class.”

Traditional monetary establishments are additionally acknowledging the significance of Bitcoin’s community impact and its dominance in the crypto market as the go-to retailer of worth.

Where is the value of Bitcoin heading from right here?

In the foreseeable future, the sentiment round Bitcoin stays combined after the public itemizing of Coinbase.

Following the itemizing of COIN, there may be hypothesis that it may mark the prime of the crypto market.

However, most on-chain knowledge and market indicators such as funding charges don’t essentially recommend {that a} blow-off prime is close to.

For occasion, in style crypto dealer identified as “Crypto Capo” said:

“I learn many individuals saying that funding is excessive, not solely in Bitcoin, but additionally in altcoins. This is relative. If we evaluate the present funding ranges with these of the prime of 2017, we see that they’re low ranges, considering that the value is thrice larger. Also, the present development is led by spot buying and selling, and never by derivatives.”

Meanwhile, key on-chain metrics additionally recommend that Bitcoin value is still far from the bull market top. On the opposite, BTC value might simply reach six figures, as forecast on the in style stock-to-flow mannequin, and even go as excessive as $400,000, according to Bloomberg analysts. 

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About the Author: Daniel