Holger Zschaepitz, a market analyst at Welt, stressed that Bitcoin (BTC) is approaching the valuation of Google as it is heading towards $ 1.5 billion market capitalization.
Currently, as of April 17, the market capitalization of Bitcoin hangs around $ 1.12 trillion, as the total valuation of the crypto market comfortably remains above $ 2 trillion.
What is the similarity between Bitcoin and Google?
The similarity between Bitcoin and Google that Zschaepitz pointed out is that both have dominance in their respective sectors.
Bitcoin has the strongest network effect in the cryptocurrency market, accounting for more than 51% of the global cryptocurrency market.
Google dominates the search engine market and has a large share of the video sharing and streaming sector with its ownership of YouTube.
Zschaepitz wrote:
“The exponential era: Thanks to network effects, the value of #Bitcoin is increasing and w / $ 1,159 tons has almost reached the stock market value of a classic #Google network share worth $ 1.5 tons.”
Whether Bitcoin’s dominance over the cryptocurrency market will be sustained over the long term remains to be seen due to the rising valuation of Ethereum and low-one blockchain networks.
However, the biggest difference between Bitcoin and the rest of the market is that there is a clear institutional demand for BTC as a store of value due to its unparalleled computing power of the blockchain network and thus security and trust.
Therefore, investors generally view Bitcoin as a hedge against inflation and the de-facto reserve crypto-currency.
In January, JPMorgan strategists wrote that Bitcoin could rise to $ 146,000 as it competes against gold as a value bath.
The strategists said:
‘This long-term rise, based on an equalization of the market capitalization of bitcoin with gold for investment purposes, is subject to the fact that the volatility of bitcoin will converge in the long run with that of gold. The reason is that, for most institutional investors, the volatility of each class is important in terms of portfolio risk management and the higher the volatility of an asset class, the higher the risk capital consumed by this asset class. ”
Traditional financial institutions also recognize the importance of Bitcoin’s network effect and its dominance in the crypto market as a good store.
Where is the price of Bitcoin from here?
In the foreseeable future, sentiment around Bitcoin will remain mixed after the public listing of Coinbase.
Following the listing of COIN, it is speculated that it may be the top of the crypto market.
However, most on-chain data and market indicators, such as funding rates, do not necessarily indicate that a blowout stop is near.
For example, a popular crypto trader known as ‘Crypto Capo’ said:
“I have read a lot of people and said that funding is high, not only in Bitcoin but also in altcoins. It is relative. If we compare the current funding levels with those of the top of 2017, we see that it is low levels. “Assume the price is three times higher. The current trend is also driven by spot trading, not by derivatives.”
Meanwhile, the key metrics also indicate that the Bitcoin price is still far from the bull market top. On the contrary, according to the popular stock-to-flow model, the BTC price could easily reach six figures and even rise to $ 400,000, according to Bloomberg analysts.