Golden Finance News: Mike Novogratz, the CEO of Galaxy Digital, recently expressed his opinion, clearly stating that Bitcoin will replace gold and its price can climb to one million US dollars.
Novogratz emphasized that Bitcoin has successfully entered the ranks of macro assets. Nowadays, most people tend to focus on Bitcoin along with gold, silver and the S&P Index on their screens, a scene that was almost unimaginable a decade ago. But now, Bitcoin has become a systematized macro asset. This means that Bitcoin is no longer a marginal investment product, but has been integrated into the traditional financial landscape, and its volatility is gradually regarded as within the normal range compared with traditional assets.
When discussing the reasons for the continuous growth of Bitcoin’s value, Novograz pointed out that its fixed supply is the key factor. The total amount of Bitcoin is set at 21 million, and no new Bitcoins will be generated. This feature contrasts sharply with that of gold, whose supply is relatively more flexible. Furthermore, with the participation of numerous institutions such as BlackRock, the status of Bitcoin as a savings asset is constantly being consolidated.
Novograz also analyzed the impact of the current global financial environment on investment tendencies. He believes that over the past 15 years, American exceptionalism has become history. European and Asian investors have responded differently to the actions of the United States, and the current government’s intention to depreciate the US dollar is also quite obvious. Against this backdrop, global changes are prompting investors to turn their attention to assets other than the US dollar, and Bitcoin is one of them. Under such circumstances, many macro funds have chosen to short the US dollar while going long on the euro, the Japanese yen, the Australian dollar, and a basket of non-US dollar assets including Bitcoin, gold, silver, platinum, etc.
Although the market capitalization of Bitcoin is still far lower than that of gold (as of now, the market capitalization of gold is approximately 13.79 trillion US dollars, while that of Bitcoin is 1.21 trillion US dollars, only about one-tenth of that of gold), Novograz firmly believes that Bitcoin will eventually surpass gold. He said that it is not out of reach for Bitcoin to become an asset larger in scale than gold. Over time, gold will gradually be replaced by Bitcoin. According to his estimation, if the market value of Bitcoin is to be comparable to that of gold, it needs to reach one million US dollars.
This view of Novograz is not isolated. Previously, Gautam Chhugani, an analyst at Bernstein, also wrote that it is expected that Bitcoin will eventually replace gold in the next decade as the primary “store of value” asset of the new era, and become a permanent component of institutional multi-asset allocation and the standard of corporate financial management. And Gil Luria of D.A. Davidson also pointed out that Bitcoin is a low-correlation asset that can replace gold to hedge against economic instability.
Of course, the view that Bitcoin will replace gold also faces some doubts. JPMorgan analysts have warned that Bitcoin’s annualized volatility of up to 50% makes it difficult to replace gold, which has lower volatility, during times of severe market turmoil. Research by CME Group shows that since the beginning of 2025, the price correlation between Bitcoin and gold has diverged. Bitcoin even pulled back by 6% when gold rose by 16%. However, Novograz doesn’t care about these doubts. He insists on being optimistic about the long-term potential of Bitcoin and believes that its trend of replacing gold is unstoppable.
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