Bitcoin's Share of Global Capital at 0.25%: Analysis of Historical Undervaluation Periods

Bitcoin currently accounts for 0.25% of global capital, indicating that its price is in a historically rare undervaluation period. It has been argued that measuring Bitcoin's value against global capital rather than fiat currency provides a more accurate view of purchasing power changes. The total capital of major global markets is estimated to be around $564 trillion, with Bitcoin still representing a very small fraction. Director Crosby pointed out that viewing Bitcoin's price solely in terms of fiat currency does not fully reflect its purchasing power. Recently, Bitcoin's underperformance has been particularly pronounced compared to gold; after the 2024 halving, Bitcoin rose approximately 98% in dollar terms, but only 54% compared to gold. Over the long term, major assets have been assessed as underperforming against Bitcoin, with the historical requirement of about 14,000 BTC to purchase one ounce of gold now reduced to about 0.06 BTC. The circulation of Bitcoin is becoming more gradual, and the current downward deviation is noted to be at a rare level. The highest share of Bitcoin compared to global capital is presented at 0.5%, and recovering this would require approximately $136,000. Gold accounts for about 5.7% of global capital, and it is emphasized that Bitcoin must outperform assets overall, including gold, to enhance its relative purchasing power.

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