Bitcoin’s recent rally has reignited comparisons with gold, as the cryptocurrency edges closer to narrowing the long-standing gap with the world’s most established store of value.
Bitcoin’s market capitalization has climbed to $2.34 trillion, placing it at about 10.09% of gold’s $23.22 trillion market cap. Analysts note that for Bitcoin to surpass gold, its price would need to rise to $1.16 million per coin — roughly a tenfold increase from current levels.
While that milestone is distant, Bitcoin’s relative performance has consistently outpaced gold over recent years:
- 5 years: BTC +892% vs. Gold +72%
- 3 years: BTC +387% vs. Gold +95%
- 2 years: BTC +304% vs. Gold +76%
- 1 year: BTC +104% vs. Gold +36%
So far in 2025, however, gold has the slight edge, returning 27.38% year-to-date, compared with Bitcoin’s 25.9%.
Supply Dynamics
One of Bitcoin’s structural advantages lies in its limited supply. Annual issuance is currently 0.83%, and programmed halvings every four years reduce that figure further over time. Gold’s supply growth stands at 1.72% annually, driven by mining and recycling, which can expand if demand accelerates.
Outlook
With Bitcoin continuing to erode gold’s dominance as a hedge asset, the debate now centers on whether its digital scarcity and stronger long-term returns can one day push it beyond gold’s $23 trillion benchmark. For now, Bitcoin has achieved a remarkable foothold — 10% of gold’s size — but crossing the next 90% would require unprecedented adoption and capital inflows.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/how-high-must-bitcoin-go-to-overtake-gold/