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September 13th Update:
Investors have witnessed a significant frenzy surrounding Bitcoin and the cryptocurrency industry, raising the question of how much wealth is invested globally in Bitcoin.
Bitcoin's wealth represents about 0.11% of the estimated total global wealth.
As market sell-offs intensify, September has reached historic lows.
In the rapidly evolving landscape of financial markets, a term has become increasingly popular - Bitcoin. Bitcoin was once viewed as a speculative bubble or a tool for illegal activities, but it has now evolved into a complex, multifaceted asset with transformative potential for the traditional financial system, often referred to as "TradFi."
As of September 11, 2023, the value of one Bitcoin is approximately $25,867. There are over 19.48 million Bitcoins in circulation, and the leading cryptocurrency's market value exceeds $500 billion. This is significantly lower than in 2021 when its value exceeded $64,000, with a total value of approximately $1.2 trillion.
The investment of Bitcoin in the global market is not just a trend; it has become an important economic force challenging the existing paradigm of the traditional financial system. Its impact on traditional investment strategies, risk management, and regulatory policies needs to be rigorously evaluated.
Bitcoin's Global Market Share
Bitcoin was born in 2009 as a response to the vulnerability and failures of centralized financial systems, sparking a revolution and gradually gaining legitimacy and acceptance. Current discussions around Bitcoin, especially in cases of bank collapses, have raised curiosity about how much global wealth is involved in the BTC ecosystem.
As Bitcoin's market capitalization continues to grow, surpassing the GDP of some of the world's most mature companies and even nations, its significance in traditional markets becomes increasingly important.
The conversation about Bitcoin's role in global investments is no longer limited to tech-savvy millennials or risk-seeking traders; it has entered boardroom discussions and government policy considerations.
As this digital asset class becomes more integrated into standard portfolios alongside stocks, bonds, and other financial instruments, the question remains: how important is Bitcoin in shaping the future of the global traditional financial system?
According to Binance's data, the real-time price of BTC is $25,867.40 per coin, with a current market capitalization of $503.89 billion. BTC has risen by 0.44% in the past 24 hours, with a circulation of 19.48 million.
According to CoinGecko's data, the current global cryptocurrency market cap is $1.05 trillion. The change in the past 24 hours is -2.45%, and the change from one year ago is -5.44%. As of now, BTC's dominance stands at 46.86%.
How Much Money Is in BTC?
The value of the global economy may vary depending on sources and specific time frames considered. The International Monetary Fund (IMF) "World Economic Outlook" report for 2023 forecasts that by the end of 2023, the world's Gross Domestic Product (GDP) will reach $105 trillion, an increase of $5 trillion from the previous year.
This implies a nominal GDP growth of 5.3%. Adjusted for inflation, this would be a 2.8% increase. To understand how much money is in BTC, we must first calculate the total wealth. Such calculations may encompass dozens of different types of wealth, including paper money, precious metals, money market accounts, and loans.
Fortunately, Credit Suisse has already done this research, estimating that by the end of 2022, the total global wealth will reach $454.4 quadrillion. This means Bitcoin represents approximately 0.11% of the total global wealth.
How Does Bitcoin Compare to Gold? After all, some still consider gold the safest haven asset. Without a doubt, it serves as a standard against which other currencies are measured. As of September 10, 2023, the U.S. Geological Survey estimates that approximately 244,000 metric tons of gold have been mined.
One ton contains 32,000 troy ounces of gold. As of the closing on September 8, 2023, the price per troy ounce of gold was approximately $1,919.08. The estimated total value of all gold is approximately $14.98 trillion (244,000 metric tons of gold x 32,000 troy ounces per ton x $1,919.08 per troy ounce).
The total value of all Bitcoins is approximately 3.4% of the total value of above-ground gold reserves. Bitcoin's share of the total wealth is much lower than you might imagine. So why is the crypto industry so popular?
Bitcoin is currently on the verge of a bearish breakout, with little likelihood of holding the $25,000 support level. On September 11, BTC broke the parallel range of $25,500 to $26,500, reaching a daily low of $24,950.
A daily closing price below $24,750 could lead to a range below $20,000, but bullish momentum could potentially recover. The global market's price trends and on-chain indicators nearing historical lows may make buyers optimistic about the continuation of a bullish trend.
According to the latest report from on-chain analytics firm Glassnode, Bitcoin's price decline over the past few weeks has led to several indicators hitting historic lows. |
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Post time 17-9-2023 09:05:15