Cathie Wood predicts Bitcoin’s $2t market cap will soon flip gold after hitting $100k milestone

Cathie Wood, founder and CEO of ARK Investment Management, believes Bitcoin is ‘bigger’ than gold and predicts BTC’s $2 trillion market cap could one day surpass gold’s $15 trillion in time.

In her last post on December 5, Cathie Wood reacted to Federal Reserve Chairman Jerome Powell’s comments about Bitcoin (BTC), describing the cryptocurrency with the largest market cap as a virtual version of gold.

Wood noted that ARK Investment Management believes Bitcoin is “a much bigger idea” than gold. He made comparisons between the value of gold and the value of Bitcoin.

The market value of gold, a commodity that has been around much longer than Bitcoin, is approximately $15 trillion. Meanwhile, Bitcoin’s market value reached $2 trillion. He therefore concluded that Bitcoin is still in its infancy and has the potential to surpass gold’s market value.

“Gold at $2,700 is a $15 trillion market, Bitcoin is only a $2 trillion market. Even after breaking $100,000, Bitcoin is still in its infancy,” Wood said.

Today, Fed Chairman Powell described Bitcoin as a virtual, digital version of gold. Gold at $2,700 is a ~$15 trillion market, while Bitcoin only has a ~$2 trillion market. Even after Bitcoin surpassed $100,000, it is still in its infancy.

— Cathie Wood (@CathieDWood) December 5, 2024

According to Crypto.news data, Bitcoin surpassed the $100,000 ceiling on December 5 after gaining 5% in the last 24 hours of trading. For the first time in history, the price of Bitcoin rose above $100,000. Bitcoin’s market value likewise increased by 5.74% to $2 trillion. At the time of writing, BTC is currently trading at $101,690.

Hours before Bitcoin’s massive jump to $100,000, Fed Chairman Jerome Powell publicly called Bitcoin virtual gold as investors tend to use both assets to preserve the value of money rather than as a payment option. Therefore, he sees Bitcoin as a rival to gold rather than the US dollar.

Price chart comparing the movements of Bitcoin and gold in the market, December 5, 2024 | Source: TradingView

Investors have been pointing out for years that Bitcoin and gold price movements often go hand in hand, with Bitcoin often following quickly after gold’s rise. The main reason for this is that both assets have the status of “safe havens” that protect investors from fluctuations in national currencies.

When the current economic situation worsens and world currencies begin to decline, investors often turn to assets such as gold and Bitcoin because their values ​​are not tied to a specific currency. Another similarity that these assets share is that their supply is limited, as both must be mined, albeit in two completely different ways, before market circulation.