Golden Finance reports that the CEO of Galaxy Digital recently expressed unique insights into the cryptocurrency market, stating directly that Bitcoin will replace gold and predicting that the price of Bitcoin will climb to $100,000. This view has drawn widespread attention in the financial market, reigniting intense discussions about the future value and status of Bitcoin.
Since Trump sealed the victory of the general election in November last year, the Bitcoin market has witnessed a strong growth. The price of Bitcoin has been breaking through key resistance levels all the way and successfully reached a record high in mid-December, with an increase of approximately 50% compared to the election day. Since the beginning of this year, the price of Bitcoin has continued to fluctuate upward at a high level, repeatedly testing the $100,000 mark. On the evening of May 21st, the price of Bitcoin once soared to $109,770, breaking the previous historical high of $109,358 set on January 20th.
In the opinion of the CEO of Galaxy Digital, Bitcoin has many characteristics that surpass gold, which is an important basis for its potential to replace gold. The decentralized nature of Bitcoin frees it from the direct control of governments or financial institutions. In contrast, the gold market is greatly influenced by factors such as the policies of central banks of various countries and geopolitics. From the perspective of storage and circulation, Bitcoin, relying on digital technology, is convenient to store and can be transferred across borders quickly. In contrast, the storage of gold requires specific conditions, and its cross-border transportation is not only costly but also faces numerous regulatory restrictions.
The changes in the market environment have also provided impetus for Bitcoin to replace gold. With the acceleration of the global digitalization process, an increasing number of investors are beginning to embrace digital assets, and the scale and influence of the cryptocurrency market continue to expand. Especially in the United States, the dynamic changes in the regulatory environment have had a significant impact on the price trend of Bitcoin. In May this year, the US Senate passed a procedural vote on the “GENIUS Stablecoin Act”, which was regarded by the market as a major positive factor and strongly pushed up the price of Bitcoin.
Michael Novogratz, the founder and CEO of Galaxy Digital, said this marked a strategic shift from Gary Gensler and the U.S. Securities and Exchange Commission under his leadership to the Trump administration’s embrace of the cryptocurrency industry. The advancement of the proposed legislation is expected to open up new capital channels for the digital currency market. It is estimated that hundreds of billions of dollars of new funds will be injected through stablecoins, which will undoubtedly further enhance the market position of cryptocurrencies such as Bitcoin.
Many institutions on Wall Street are also optimistic about the future trend of Bitcoin. Alex Thorn, the research director of Galaxy Digital, predicts that Bitcoin will break through $150,000 in the first half of this year and reach $185,000 in the fourth quarter. Elitsa Taskova, the chief product officer of the crypto lending platform Nexo, is even bolder in predicting that Bitcoin will more than double within a year to reach $250,000, and from the perspective of the next decade, the market capitalization of the entire crypto market will surpass that of gold.
However, not everyone agrees with the view that Bitcoin will replace gold. Katie Stockton, a top technical strategist on Wall Street, has issued a warning that the upward momentum of Bitcoin has weakened somewhat and there might be a selling spree lasting for several weeks. It is expected that support levels will eventually be found around $84,500. If the price continues to fall, the next support level may be around $73,800.
Gold, as a traditional safe-haven asset, has developed for thousands of years and has a deep foundation and wide recognition in the global economic system. Its value stability, scarcity and hedging function in times of crisis are indispensable parts for many investors in asset allocation. Although Bitcoin is developing rapidly, it still needs to overcome many challenges to completely replace gold, such as the uncertainty of regulatory policies and the high volatility of the market.
It is still undetermined whether Bitcoin can replace gold as predicted by the CEO of Galaxy Digital. However, it is certain that as the cryptocurrency market continues to develop and mature, the position of Bitcoin in global asset allocation is increasingly rising, and its relationship with gold will also continue to be a focus of market attention.
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