Chris Burniske, a leading cryptocurrency researcher and partner at Placeholder, a crypto venture capital fund with over $150 million in capital under management, believes the next crypto bull market will see Bitcoin’s (BTC) market cap surpass $1 trillion.
The prominent crypto analyst who has over 100K Twitter followers shared his thoughts via the popular social media platform:
Looking at the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) gets to $1 trillion on its own in the next bull market. pic.twitter.com/75YaGesYxR
— Chris Burniske (@cburniske) April 20, 2019
Burniske’s tweeted chart titled, “Top 10 Crypto Network Values at the End of Each Year,” shows how at the peak of the hyperbolic 2017 crypto rally, the price of Bitcoin reached $20,000, giving it a market capitalization of $327 billion, which is nearly half of the total crypto market cap highs of $813 billion.
If Bitcoin’s market cap were to reach $1 trillion during the next epic bull run, BTC would have to be trading at over $40,000 and would be valued higher than the entire crypto market cap at the 2017 peak.
How Will Bitcoin Reach a $1 Trillion Market Cap?
While many are confident that Bitcoin will surpass its previous all-time highs and reach unfathomable heights, what is it going to take to do this?
For many people, including Mike Novogratz, founder and chief executive officer at Galaxy Digital, they believe Bitcoin will become digital gold and will thus have substantial value.
If Bitcoin is able to capture just a fraction of gold’s $7.5 trillion market cap, the #1 cryptocurrency asset will surpass a $1 trillion market cap.
However, to do this, Bitcoin must evolve to actually become a recognized store of value that’s an alternative to gold. While many people believe it already is an alternative to gold, the truth is that proper infrastructure must be established to handle massive inflows of capital.
One such individual who thinks Bitcoin’s infrastructure needs work is Jeff Sprecher, the chairman of the New York Stock Exchange.
Explaining his reasoning in an interview with Fortune, Sprecher said:
“Bitcoin does not have a good market structure. Even for Bitcoin, different markets are posting lots of different prices. And you can pay an up to 6% spread to exchange dollars for Bitcoin, meaning Bitcoin needs to rise by as much 6% before you break even.”
Institutional FOMO Will Drive Bitcoin’s Price
Once the proper infrastructure (which is already being built) for buying, selling, and storing Bitcoin is improved and finalized, institutional investors will come and Bitcoin’s market cap could easily surpass a $1 trillion.
Novogratz thinks institutional investors will drive Bitcoin to a multi-trillion market cap over the long run, and that it will far surpass that of gold.
Previously, speaking to Bloomberg, Novogratz said:
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of a sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”
When do you think Bitcoin will reach a market cap of $1 trillion? Will it be during the next bull run? Will it far exceed $1 trillion? Let us know what you think in the comment section below.
