CoinShares, a digital asset investment firm, recently released a report suggesting Bitcoin 
$72,950 could surpass its current valuation. The report considers global liquidity and the market value of gold to assess Bitcoin’s growth potential. By utilizing the Total Addressable Market (TAM) model, CoinShares presents relative scenarios for Bitcoin’s potential price increase.
Global Liquidity and Gold Market Connection
According to the report, global liquidity, expressed as global M2, currently stands at $127.3 trillion. Additionally, the total market value of all gold mined thus far is valued at $23.9 trillion. The analyses suggest that if Bitcoin takes a small share of these significant financial markets, it could experience substantial growth.
CoinShares evaluates that if Bitcoin captures 2% of the global M2 and 5% of the gold market, its unit price could reach approximately $189,000. This scenario is backed by market penetration models applied within the TAM framework.
Scenarios According to the TAM Model
The TAM model is leveraged to predict the maximum market size that a product or service can attain. CoinShares has adapted this method for Bitcoin to analyze potential future valuation levels.
“It’s unlikely for Bitcoin to compete with corporate treasuries or foreign reserves, and it’s presumed to gain zero shares in these areas; however, by capturing 2% of the global M2 and 5% of the gold market, Bitcoin could foresee a value of $189,000 per unit.”
The report indicates that Bitcoin does not need to replace the existing global monetary system in its entirety. Instead, merely acquiring a small portion of these markets may suffice for value increase.
“Bitcoin does not need to overhaul the entire global monetary system. Acquiring small shares from these large markets is sufficient.”
Bitcoin’s Role and Future Outlook
The report highlights that as Bitcoin becomes more functional as a form of money, its chance of gaining a bigger share in monetary markets increases. CoinShares suggests increasing trends of the digital asset’s functionality and adoption rates could significantly grow in the future.
“Bitcoin’s prospects of securing a larger share of monetary markets are increasingly tangible.”
At the time of analysis, Bitcoin was trading around $114,800, noticeably below the projected $189,000 level mentioned in the report. Therefore, if the indicated market shares are achieved, Bitcoin could appreciate by approximately 65%.
Experts indicate that the role of digital assets, especially Bitcoin, in the financial system could vary depending on market conditions and investor interest. Consequently, CoinShares’ evaluations do not offer definitive predictions but aim to analyze Bitcoin’s potential interaction with global financial markets.
