Cryptocurrency (Apr 09, 2021 10:40AM ET)
Why’s Bitcoin stuck under $60,000? The gold market cap may hold the answer
After rallying more than 100% in 2021, Bitcoin (BTC) seems to be struggling to turn the $60,000 level into support. After all, what is so special about this magic round number and its accompanying $1 trillion market capitalization?
Gold’s $11 trillion market cap might hold the answer, as Bitcoin’s current trading volume and the amount held by institutional investors seem to match 10% of the precious metal’s numbers.Bitcoin market capitalization, USD billion. Source: TradingViewMost valuable global assets. Source: 8marketcap.comAverage daily trading volumes, USD billion. Source: gold.orgAccumulated year-to-date transparent volume on April 2, USD. Source: NomicsGold held by ETF products. Source: gold.orgBitcoin addresses holding 100 to 10,000 BTC. Source: Santiment