Crypto investor Brian Kelly says that Bitcoin’s (BTC) market cap could soar 10x if investors start preferring the king crypto over gold.
In a new interview on CNBC’s Fast Money, the founder and CEO of digital asset investment firm BKCM says that he is bullish on Bitcoin for several reasons, including a possible approval of a spot market Bitcoin exchange-traded fund (ETF).
“We have another halving coming up in April. And I’m not one of those people that thinks the halving is the actual catalyst. But it’s one of those sentiment things that all of a sudden now you have a reduction in supply. Couple that with the fact that we have the Federal Reserve that is likely done for some time being of raising rates. If not, we don’t think they’re going to go to 10%. Maybe they go to 5.5%.
And then the second part of that is we now have these ETF filings. So for the first time ever, just like the gold ETF, you’re going to have retail investors, not that they couldn’t buy it before, but now registered investment advisors, your Morgan Stanley wealth manager can allocate to this, and so that’s what got the market excited about this new ETF.”
The trader predicts that investors will start treating Bitcoin “as digital gold,” taking market share away from the precious metal, which could send Bitcoin’s market cap soaring.
“I think the easiest way to think about [Bitcoin] is digital gold. If you have a portfolio and you’ve got some of it that you want allocated to gold, and let’s call that for inflation reasons, you’re worried about the dollar or whatever your currency is going lower, you want to have some kind of hedge against that. So you could do gold or you can do Bitcoin. And I would argue that Bitcoin is a better use case than gold because I can’t use gold on the internet. I can use Bitcoin on the internet.
So simply look at Bitcoin at a $700 billion market cap right now. All the gold that’s ever mined is worth somewhere around $7-8 trillion. So Bitcoin can take some market share from gold, which I think it’s doing. Then the multiple returns from there, why couldn’t it be 5x from here, why couldn’t it be 10x from here? Those are crazy big numbers, but if it starts to take market share, just like any other kind of business would out there, that is what starts driving up the market cap.”
Bitcoin is trading for $36,203 at time of writing, down 3.5% in the last 24 hours.
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