The market capitalization of gold hit a record $30 trillion on Thursday as the commodity soared to a new peak of $4,357 per ounce.
This record market cap indicates that gold is now 14.5 times larger than Bitcoin’s market capitalization, which sits at approximately $2.1 trillion.
Gold’s market cap is also 1.5 times greater than the combined market capitalization of the “Magnificent 7” largest tech companies—Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla—whose total market cap is around $20 trillion.
Unlike a company’s stock market cap, which depends on outstanding shares, gold’s market cap represents the total value of all gold ever mined; however, determining the exact amount is impossible.
This year’s surge in gold may boost Bitcoin
The price of gold has jumped 64% since January 1 as investors gravitate towards this store of value amid dollar debasement, geopolitical tensions, and trade tariff issues.
Analysts speculate that capital will shift into Bitcoin, often referred to as digital gold, when the gold market eventually stabilizes.
Related: Bitcoin-gold correlation rises as BTC mirrors gold’s trajectory as a store of value
“Gold added over $300 billion to its market cap today,” stated crypto analyst Sykodelic on Thursday. “It’s been adding an entire Bitcoin market cap in just one week.”
“I don’t understand how most cannot see that as soon as gold stalls, BTC is going to surge.”
“If Bitcoin can decouple from US equities [given] the tense geopolitical climate, particularly if gold inflows slow down, this could be the next big trade,” remarked venture investor Joe Consorti.
Meanwhile, analyst “Merlijn the Trader” pointed out that while the M2 global money supply is rising and gold is booming, Bitcoin remains stagnant.
“This divergence is temporary; liquidity inevitably seeks out risk, and the catch-up rally will be intense,” he stated.
Bitcoin (BTC) has risen 16% since January 1, which is nearly 14% below its all-time peak.
Magazine: Binance disrupts Korea, Morgan Stanley’s security tokens in Japan: Asia Express
