Gold’s Rally Sparks Bitcoin Price Comparisons
The recent gold rally to nearly $4,000 per ounce has reignited debate among financial analysts about Bitcoin’s long-term valuation. According to VanEck’s head of digital asset research, Matthew Sigel, the surge in gold’s price implies a potential $644,000 value per Bitcoin if the cryptocurrency reaches half of gold’s market capitalization after its next halving cycle.
Bitcoin Valued at Half of Gold’s Market Cap
Gold futures reached a record high above $4,000, as investors sought traditional safe-haven assets amid global economic and political uncertainty. Sigel noted that if Bitcoin captures even half of gold’s total market cap, it would trade at an “equivalent value of $644,000 per coin.”
“We’ve been saying Bitcoin should reach half of gold’s market cap after the next halving,” Sigel stated, referring to Bitcoin’s 2028 halving event, which will further reduce its supply issuance.
While gold has outperformed Bitcoin so far this year, climbing nearly 50%, analysts believe the store-of-value narrative is shifting among younger investors.
Younger Investors Choose Bitcoin Over Gold
Sigel explained that roughly half of gold’s market value stems from its use as a store of value, rather than from industrial or jewelry demand. However, younger generations in emerging markets are increasingly favoring Bitcoin for this role.
“Surveys show younger consumers in emerging markets increasingly prefer Bitcoin as a store of value,” Sigel said, underscoring a generational shift in investment behavior.
Analyst Jordi Visser echoed this sentiment, suggesting that younger generations’ dissatisfaction with traditional financial systems and calls for greater public spending could further support Bitcoin’s long-term appreciation.
Veteran trader Peter Brandt believes gold’s rally may still continue. “Gold may go substantially higher before any meaningful correction,” he wrote, cautioning that speculative buyers might face volatility in the future.
Meanwhile, Bitcoin surpassed $126,000, marking a new all-time high in dollar terms. Yet, Peter Schiff, a known Bitcoin critic and gold advocate, argued that Bitcoin remains 15% below its record high when priced in gold.
In contrast, Joe Consorti, head of growth at Theya, believes that gold’s rise has effectively lifted Bitcoin’s “fair value floor” to around $1.34 million, signaling growing convergence between the two assets as digital and physical stores of value.
As gold continues its upward climb, analysts suggest Bitcoin could be on the verge of a similar revaluation — potentially redefining its role as the digital counterpart to gold in the global economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.