Gold’s market capitalization reached a record $30 trillion on Thursday as the commodity surged to a new all-time high of $4,357 per ounce.
The milestone market cap peak means that gold is now 14.5 times larger than Bitcoin’s market capitalization, which is around $2.1 trillion.
It is also 1.5 times larger than the market capitalization of the “Magnificent 7” largest tech companies on the planet, Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla, whose combined market capitalization is just around $20 trillion.
Unlike a company’s stock market cap, which is based on outstanding shares, the market cap of gold is a calculation of the total value of all the gold that has ever been mined; however, it is impossible to know the exact amount.
Gold rocketed this year, Bitcoin could benefit
The price of gold has surged 64% since Jan. 1 as investors flock to the store of value asset amid dollar debasement, geopolitical tensions, and trade tariff woes.
Many analysts believe that capital will rotate into Bitcoin, often referred to as digital gold, when the gold market cools.
Related: Bitcoin-gold correlation increases as BTC follows gold’s path to store of value
“Gold added over $300 billion to its market cap today,” said crypto analyst Sykodelic on Thursday. “It’s been adding an entire Bitcoin market cap in one week,” he continued.
“I don’t understand how most cannot see that as soon as gold stalls, BTC is going to rip.”
“If Bitcoin can loosen its correlation with US equities [amid] the tense geopolitical backdrop, particularly if gold flows decelerate, perhaps this is the trade after the trade,” said venture investor Joe Consorti.
Meanwhile, analyst ‘Merlijn the Trader’ observed that the M2 global money supply was surging, gold is ripping, but Bitcoin is sleeping.
“This divergence never lasts, liquidity always finds risk, [and] the catch-up rally will be brutal,” he said.
Bitcoin (BTC) is currently up 16% from its levels on Jan. 1, which is almost 14% from its all-time high.
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