Bitcoin (BTC) is approaching Google’s market cap, but why is this observation important?
Holger Zschaepitz, a market analyst at Welt, emphasized that Bitcoin (BTC) is approaching Google’s valuation as it moves towards $ 1.5 trillion in market value.
Currently, as of April 17, Bitcoin’s market capitalization hovers around $ 1.12 trillion, as the entire valuation of the crypto market has remained comfortably above $ 2 trillion.
What is the similarity between Bitcoin and Google?
The similarity between Bitcoin and Google pointed out by Zschaepitz is that they both have dominance in their respective industries.
Bitcoin has the strongest network influence in the cryptocurrency market and accounts for more than 51% of the global cryptocurrency market.
Google means that it has a large share in the video sharing and streaming industry, with its dominance in the search engine market and having YouTube.
Exponential Age: Thanks to network effects, the value of #Bitcoin is increasing and a classic network share of $ 1.159 trillion, worth almost $ 1.5 trillion, has reached the stock market value of # Google.
Due to the rising valuation of Ethereum and first-tier blockchain networks, it remains to be questioned whether Bitcoin’s dominance over the cryptocurrency market will continue in the long term.
However, the biggest difference between Bitcoin and the rest of the market is that it is a clear institutional demand for BTC as a store of value due to its unrivaled blockchain network computing power and thus security and insecurity.
For this reason, investors often view Bitcoin as a protection against inflation and the de facto reserve cryptocurrency.
In January, JPMorgan strategists wrote that Bitcoin could rise to as high as $ 146,000 as it competes against gold as a store of value.
This long-term rise, which is based on equating the market value of Bitcoin with that of gold for investment purposes, depends on the volatility of bitcoin, which in the long run converges to the volatility of bitcoin. This is because for most institutional investors, the volatility of each class is important to portfolio risk management, and the higher the volatility of an asset class, the higher the risk capital consumed by that asset class.
Traditional financial institutions recognize the importance of Bitcoin’s network influence and its dominance in the crypto market as a store of value.
Where is the Bitcoin (BTC) price going?
In the foreseeable future, opinions about Bitcoin after Coinbase’s public release continue to be mixed.
Following the listing of the COIN, there is speculation that it may mark the top of the crypto market.
However, most market indicators such as on-chain data and funding rates do not necessarily indicate that a booming peak is imminent.
For example, the popular crypto trader known as “Crypto Capo” said:
I’ve read a lot of people who say that funding is high not only in Bitcoin, but also in altcoins. This is relative. If we compare the current funding levels with the highs of 2017, we see that they are at low levels. take into account that the price is three times higher. Also, the current trend is driven by spot trading, not derivatives.
Meanwhile, key metrics on the chain show that the Bitcoin price is still far from the bull market peak. On the contrary, according to Bloomberg analysts, the BTC price could easily reach six figures and even go as high as $ 400,000 as predicted in the popular stock flow model.