Crypto’s Next Frontier? Catching Up to Gold’s Massive Valuation

Speaking in a recent interview, Novogratz reflected on the overheated state of the crypto market earlier this year, describing it as a necessary cooling period after an unsustainable wave of hype. A mix of high-risk assets and meme-fueled speculation — including projects like the controversial Trump-themed coin — fueled a temporary bubble that has since deflated.

Despite the correction, Novogratz sees signs of stabilization and upward momentum. He pointed out that Bitcoin appears to be regaining strength, with key levels near $106,000 already under pressure and the path to $130,000 or even $150,000 potentially opening up if momentum continues.

But it’s not just about short-term targets.

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Novogratz’s broader thesis is anchored in the belief that crypto will eventually stand shoulder to shoulder with gold — which today commands a global market valuation of around $22 trillion. In contrast, the total crypto market is still under $3 trillion, leaving what he sees as immense room for growth.

The tipping point, he suggests, could come from a historic transfer of wealth already underway. As older generations pass on trillions in assets to younger heirs, the investment habits of millennials and Gen Z — who are far more comfortable with digital finance — could significantly reshape global capital flows.

According to Knight Frank’s 2024 Wealth Report, an estimated $90 trillion is expected to change hands over the next two decades. Novogratz believes much of that capital won’t follow traditional paths — instead, it could pour into decentralized assets like Bitcoin, fundamentally altering the balance of global stores of value.

If that shift materializes, crypto may not just challenge gold’s valuation — it could redefine what the next generation considers “digital gold.”

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