CZ Says Bitcoin Could Surpass Gold’s Market Cap Next Cycle

Changpeng “CZ” Zhao, co-founder of cryptocurrency exchange Binance, told attendees at a Hong Kong conference that Bitcoin could surpass gold in market capitalization during the next bull cycle.

Zhao noted that gold’s market cap remains roughly 10 times larger than Bitcoin’s, but argued the gap will narrow as investors rethink reserve assets. Investors can track the evolving relationship between the two assets on the gold vs. BTC chart.

Sovereign reserves will shift, CZ argues

CZ expressed confidence that sovereign reserve allocations will eventually move toward digital assets, with Bitcoin representing more than 50% of strategic crypto holdings. A growing number of countries already hold bitcoin in some capacity.

He cautioned that the transition won’t be immediate:

“Major countries have built complete valuation, reserve, and trading systems around gold, so a shift to Bitcoin will not happen overnight.”

Bitcoin and gold rally amid debt concerns

Both Bitcoin and gold have surged amid rising concerns over America’s national debt, which recently hit $40 trillion, and climbing bond yields.

Bitcoin’s price rose 25% over the past week to cross above $80,000, trading at $79,500 on August 27.

Gold climbed nearly 15% in August alone, trading above $4,600.

Store-of-value narrative strengthens

CZ is one of several prominent figures who see Bitcoin benefiting as more investors treat the largest cryptocurrency as a store of value comparable to gold bullion.

A full picture of institutional and government bitcoin holdings is available on the treasuries tracker.