Gold’s $1.65T rally nearly matches Bitcoin’s market cap
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Bitcoin traded lower on Wednesday while gold advanced 4.4% over the prior 24 hours, adding approximately $1.65 trillion to its market capitalization in a single session, according to Infinite Market Cap. Gold surpassed $5,500 to set a new all-time high, lifting its total market value to $38.77 trillion. The one-day increase nearly matched Bitcoin’s (BTC) market cap of $1.75 trillion, the data shows.
Silver also extended gains, rising 21.5% over the past week to a market capitalization of $6.6 trillion, widening its lead over Nvidia, the largest publicly traded company by market value.
Largest assets by market cap. Source: Infinite Market Cap
The multi-month rally in precious metals—often associated with the “debasement trade”—has contrasted with Bitcoin, which some market participants also view as a potential haven. Bitcoin has struggled to recover since early October following a broad crypto sell-off on Oct. 10 that triggered liquidations exceeding $19 billion.
Prior to the Oct. 10 downturn, investors had increasingly considered both Bitcoin and gold as hedges against fiscal expansion and monetary easing. Over a five-year horizon, the performance gap has favored gold: it has gained 173% versus Bitcoin’s 164% increase.
Bitcoin could be undervalued, institutional investors say
A Coinbase survey published earlier this week reported that 71% of 75 institutional investors believe Bitcoin is undervalued when trading between $85,000 and $95,000.
Additionally, about 80% of respondents said they would either maintain positions or increase exposure if the crypto market fell another 10%, indicating continued long-term commitment to the asset class.
Bitcoin, gold sentiment on opposite ends of spectrum
Diverging sentiment indicators reflect the split between the two assets. The Crypto Fear & Greed Index, which tracks Bitcoin and broader crypto market sentiment, stands at 26 out of 100 (“Fear”), while JM Bullion’s Fear & Greed Index for gold reads 99 out of 100 (“Extreme Greed”).
Source: JM Bullion
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