Ansem: The market cap gap between BTC and gold will keep narrowing; this cycle resembles the 2020-2021 DeFi expansion

PANews, October 6 — Well-known trader Ansem posted on X that another reason he is currently bullish on Bitcoin is that Bitcoin failed to even set a new all-time high relative to gold in the previous cycle. Ansem believes that if one accepts the logic that BTC is the best digital hard currency, then the gap between BTC and gold will continue to narrow. Gold's market cap is currently around $30 trillion, while Bitcoin's is around $1.7 trillion. As the gap between the two narrows, the rationale for governments to add Bitcoin to their balance sheets will also strengthen further, similar to how they currently hold gold.

Ansem also said he does not think it is necessary to map this cycle one-to-one onto 2020, 2023 or 2024, and that what is closer to the current market environment is the DeFi expansion of 2020-2021. At that time, entirely new market verticals brought billions of dollars in capital to the on-chain market; today, stablecoins, and tokenized equities in particular, are opening up new markets while simultaneously attracting retail investors, institutions and developers to participate. Ansem believes that emerging verticals will bring new capital flows, new products and a great deal of speculation, and this is the framework through which he is judging the current cycle.