The Law of Large Numbers
Bitcoin is growing up, and in order to run up to higher prices, we will necessarily require larger capital inflows...and the numbers are starting to get very big indeed.
G’day Folks,
Bitcoin is a big boy now.
With a market cap of over $2 Trillion, Bitcoin is the largest cryptoasset (by far), the 6th largest base money, and the 7th largest global asset.
However, Bitcoin is also a very small fish swimming in a very large pond, representing just 0.2% of total global asset classes.
We’re in this funny spot where relative to Bitcoins history, the current size and scale are absolutely gargantuan. We’re seeing regular $500M inflow days into the ETFs, and those represent just a fraction of the total market of supply and demand.
At the same time, a single Bitcoin is worth $100k+, and a 50% price move from here would represent a $1 Trillion increase in the market cap.
As Bitcoin grows, we will need increasingly large sums of capital to push the market to new altitudes. Things move slower up here, and yet the doors have now opened to considerably larger pools of capital.
In today’s post, I will make an attempt to size up the current Bitcoin market. The goal is to try and gauge how much capital we’d need to enter the space in order to achieve price targets of $150k and above.
Let’s explore the law of large numbers.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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