Is Bitcoin becoming the ‘Google’ of crypto as BTC market cap nears new milestone?

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Holger Zschaepitz, a market analyst at Welt, emphasised that Bitcoin (BTC) is nearing the valuation of Google, because it heads towards $1.5 trillion in market capitalization.

Presently, as of April 17, the market cap of Bitcoin is hovering at round $1.12 trillion as all the valuation of the crypto market stays comfortably above $2 trillion.

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What’s the similarity between Bitcoin and Google?

The similarity between Bitcoin and Google that Zschaepitz identified is that each have dominance of their respective sectors.

Bitcoin vs. Google market cap. Supply: Bloomberg, Holger Zschaepitz

Bitcoin has the strongest community impact within the cryptocurrency market, accounting for greater than 51% of the worldwide cryptocurrency market.

Google has dominance over the search engine market and has a large share of the video-sharing and streaming sector with its possession of YouTube.

Zschaepitz wrote:

“The Exponential Age: Because of community results, the worth of #Bitcoin is rising and w/$1.159tn has virtually reached the inventory market worth of a traditional community share #Google which is value $1.5tn.”

Whether or not Bitcoin’s dominance over the cryptocurrency market could be sustained over the long run stays in query, because of the rising valuation of Ethereum and layer-one blockchain networks.

Nonetheless, the foremost distinction between Bitcoin and the remainder of the market is that there’s clear institutional demand for BTC as a retailer of worth as a consequence of its unmatched blockchain network computing power and subsequently, safety and trustlessness.

Therefore, traders usually view Bitcoin as a hedge in opposition to inflation and the de facto reserve cryptocurrency.

In January, JPMorgan strategists wrote that Bitcoin might rise to as excessive as $146,000 because it competes in opposition to gold as a retailer of worth.

The strategists said:

“This long run upside primarily based on an equalization of the market cap of bitcoin to that of gold for funding functions is conditional on the volatility of bitcoin converging to that of gold over the long run. The reason being that, for many institutional traders, the volatility of every class issues when it comes to portfolio threat administration and the upper the volatility of an asset class, the upper the chance capital consumed by this asset class.”

Conventional monetary establishments are additionally acknowledging the significance of Bitcoin’s community impact and its dominance within the crypto market because the go-to retailer of worth.

The place is the value of Bitcoin heading from right here?

Within the foreseeable future, the sentiment round Bitcoin stays combined after the general public itemizing of Coinbase.

Following the itemizing of COIN, there may be hypothesis that it might mark the highest of the crypto market.

Nonetheless, most on-chain information and market indicators akin to funding charges don’t essentially recommend {that a} blow-off prime is close to.

As an example, widespread crypto dealer often known as “Crypto Capo” said:

“I learn many individuals saying that funding is excessive, not solely in Bitcoin, but in addition in altcoins. That is relative. If we evaluate the present funding ranges with these of the highest of 2017, we see that they’re low ranges, considering that the value is 3 times greater. Additionally, the present pattern is led by spot buying and selling, and never by derivatives.”

In the meantime, key on-chain metrics additionally recommend that Bitcoin worth is still far from the bull market top. Quite the opposite, BTC worth could simply reach six figures, as forecast on the favored stock-to-flow mannequin, and even go as excessive as $400,000, according to Bloomberg analysts.