Bitcoin investors are still on the starting line

The exponential growth of Bitcoin that we have seen since its inception has conquered the world, attracting hundreds of billions of dollars from investors, while gaining widespread use as both a currency and a stock of value.

This growth, however large, does not result in market size Bitcoin to the level of what is observed from more traditional assets and currencies.

The visualization of the market size of BTC, compared to that of more traditional assets, clarifies how small it really is and how much room there is for maturation in the coming years.

This potential rise comes when technical and fundamental strength begins to emerge, signaling to many investors that the next steps must be observed in the coming months and years.

A comparison of Bitcoin with other markets shows that investors are still at an early stage

Bitcoin’s market capitalization of 163 billion is by no means small and is a reflection of the massive growth that the asset has seen over the last decade.

Nevertheless, a comparison of BTC with other major markets clarifies how small it actually is worldwide – which also shows that current investors are still at an early stage.

Rafael Schulze-Kraft, founder of the Glassnode analytics platform, wrote about Bitcoin’s limited market capacity in a recent Twitter post, while forwarding data from his platform on the size of the BTC against gold, the Fed’s balance sheet and global supply. currency.

“And if you’re wondering how early we’re at Bitcoin, look at its relative market capacity, ” he said.

The above graph shows that BTC still has the opportunity to grow as it continues to gain wider application and attract new investors.

How far can BTC go in the coming years?

Investors looking for insightful observation of how high the BTC can climb in the medium term are largely turning to the popular stock-to-flow model of cryptocurrencies.

This economic model predicts that a shortage of BTC combined with growing demand will lead to a rise to $ 100,000 by the end of this year.

The potential of BTC can be nurtured by traditional investors looking for a “hard asset” that allows them to escape the turbulence that is likely to be seen in traditional markets in the coming months.

Bitcoin Defender Dan Hadle considered this possibility, saying:

“If faith is lost in existing institutions, we will not see a normal FOMO cycle run by retail, we will see a flight to the security of world money.”