Precious competitor: how Bitcoin displaced gold from the position of the most stable asset

Annual analyst forecasts increasingly point to one scenario: Bitcoin is not just trading above the price of 1 kg of gold, but continues to maintain this status with growing confidence. The current market capitalization of the crypto leader has reached $1.74 trillion, placing it alongside the most powerful financial assets in the world.

The jump that changed asset rankings

Over the past month, Bitcoin has demonstrated volatility but generally remains around $87,000, showing resilience amid macroeconomic fluctuations. For context: a kilogram of gold is valued at approximately $84,000, confirming a visual gap between these two assets.

This discrepancy is not accidental. Over the last seven days, the flagship digital asset has experienced cycles of growth and correction, but the overall trend remains upward. Once, silver ranked eighth by market capitalization, but now Bitcoin is already catching up with Saudi Aramco in seventh place. Many experts directly state: gold should also prepare for a change in position.

Historical cycles indicate further growth in 2025

Crypto analyst Rekt Capital pointed out a pattern observed over several halving cycles. Data shows that the lows of bear markets and the peaks of bull cycles occur with remarkable regularity—roughly the same number of days before and after halving.

In 2016, Bitcoin hit its bottom 547 days before the halving and its peak 518 days after. A similar pattern repeated in 2020: bottom 517 days before, peak 549 days after. Now, history is approaching its third repeat: the 2024 halving occurred in the context of a bottom reached exactly 517 days prior.

If this parallel holds, the peak of the bull market can be expected around October 2025.

Dynamics of accumulation and factors driving prices upward

Analyst Vijay Boyapati points out a critical detail: large sellers had to liquidate their positions. Over the past six months, Bitcoin absorbed sell-offs from serious players—Mt Gox, the German government, various bankruptcies. Now, these sources are drying up.

“Only buyers remain,” summarizes Boyapati. His conclusion: liquidity in bull markets will only appear at significantly higher prices. When the $100,000 threshold is crossed, a phase will begin that he called the “crazy” part of the cycle.

An additional catalyst is the return of funds from FTX creditors in dollars. Most affected investors will seek exposure to BTC to compensate for the missed two-year growth.

Vivek Suna and other analysts correlate Bitcoin prices with global liquidity. When central banks worldwide, including the largest, shift to quantitative easing, Bitcoin traditionally rises. The trend is confirmed: several central banks have already announced quantitative easing, and the asset’s price reflects this.

Government support as a new factor

There are real rumors about creating a strategic Bitcoin reserve at the US level. David Bailey from Bitcoin Magazine called this possibility the most important crypto-industry policy for the Trump administration.

Senator Cynthia Lummis, who proposed the Bitcoin National Reserve Act, suggests the possibility of bipartisan support within the first 100 days if the public supports the idea.

Surge in Bitcoin ecosystem volumes

The positive dynamics of Bitcoin sharply reflected on related assets. On November 11, the so-called “Bitcoin Industrial Complex” – ETFs, MicroStrategy MSTR, and Coinbase COIN – recorded trading volume of $38 billion. This is a record for the category.

In detail: BlackRock’s IBIT ETF alone processed $4.5 billion, Fidelity’s FBTC over $1 billion. All Bitcoin ETFs together traded for $7.2 billion— the largest daily volume since March of this year.

MicroStrategy, which recently purchased Bitcoin worth $2 billion, meanwhile marked $13 billion in trading volumes of its MSTR shares—an absolute record in history.

Coinbase caught this energy: the app ranks 33rd in the Apple App Store, the highest since February 2022.

All this indicates: the market considers Bitcoin no longer just a digital curiosity but a serious asset competing with physical gold and government securities.