CZ says Bitcoin could flip gold as global market value narrows

Source Cryptopolitan

Binance’s founder Changpeng ‘CZ’ Zhao made one of his bullish predictions for BTC. He believes Bitcoin’s value can flip gold at some point in the future. 

Despite the strength of gold, Changpeng ‘CZ’ Zhao believes Bitcoin’s overall value can flip the precious metal. Currently, the overall market cap of BTC is way behind gold, which is the world’s most valuable asset. 

BTC also lags behind some of the top tech companies, and often trades more similar to a stock than a precious metal. 

BTC still has a market cap at around $2.21T, while gold is at $30.34T during one of its most powerful rallies. Both BTC and gold have been added to the so-called ‘debasement trade’, as a potential security against the devaluation of currency and especially the US dollar. 

Over the years, BTC has caught up with gold, making a flippening not so unrealistic. When BTC launched, the global market cap of gold was at around $8T, with periods of sideways trading for years. BTC often surpassed BTC in terms of annualized growth, only taking the second spot in 2021. 

Zhao tweeted just as BTC attempted to hold onto the $111,000 range. Gold traded close to its peak, at $4,346.45, after a recent recovery. As of October, BTC is considered undervalued compared to gold, and expected to close the value gap by rising to the $130K-$150K range. 

Will Bitcoin outcompete gold in 2025?

In the year to date, BTC locked in 61% in total gains, while gold stood at 60.7% as of October 20. 

BTC also displaced silver, which briefly took the lead as the most rapidly expanding asset in the year to date. Silver only gained a small head start on BTC, though still depending on regional factors. 

Bitcoin’s major disadvantage is that it is still not considered an official reserve. Government vaults are also quite small in comparison to gold reserves. Over time, however, BTC has served well to offset both USD and local currency risks. 

Both BTC and gold track the growth of M2 money, meaning their nominal price does not always offset inflation. The assets are also trading with short-term anomalies, and may change direction over time. 

Based on Polymarket data, the relationship of BTC and gold remains volatile. The odds of BTC outperforming gold by the end of 2025 are on the low side, but have recovered to around 25%

Will BTC rally after gold’s peak? 

Historically, gold peaks have also been followed by BTC rallies. Most notably, after the 2020 pandemic slump, BTC caught up with gold, shifting to the $60,000 range. 

Changpeng 'CZ' Zhao: Bitcoin will flip gold
Historically, BTC has rallied after a peak price for gold, breaking to a new price range as in 2020. Currently, BTC is lagging, but is also expected to close the gap with gold. | Source: Newhedge

BTC has also closed the gap with gold at the end of 2024. Currently, BTC is lagging, but is once again expected to close the gap with gold, resulting in a higher price range. 

The coin recently retested its long-term trendline against gold, but regained its overal momentum. It has expanded its price in terms of gold over the years, and may continue the correlation, according to analysts.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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