Bitcoin (BTC) price prediction: If it captures a small portion of the cash and gold markets, it is expected to rise to $189,000.

A report by the digital asset company CoinShares shows that if Bitcoin were to capture just a small share of global monetary liquidity (M2) and the gold market, its price could soar to $189,000. This valuation model does not rely on extreme assumptions but is based on realistically possible market penetration rates, attracting widespread attention from encryption investors.

The market value of Bitcoin has tremendous growth potential According to CoinShares' analysis report, if Bitcoin rises by 65% from its current price of approximately $113,500, its target price will reach around $189,000. This speculation is based on a seemingly simple yet profoundly significant concept: Bitcoin only needs to capture a small portion of the global major currencies and gold reserves to potentially achieve significant appreciation.

Overview of the Global Currency and Gold Market Size Currently, the total global Liquidity (M2) is approximately 127 trillion dollars, and the value of all mined gold worldwide is about 24 trillion dollars. CoinShares uses the Total Addressable Market (TAM) model for estimation, which is a method commonly used by startups for market forecasting.

TAM model estimated price path If Bitcoin only occupies 2% of the global M2 market and 5% of the total market value of gold, according to this model, its reasonable price range will reach $189,000. This prediction does not include the scenario of Bitcoin being used as corporate treasury reserves or foreign exchange reserves, but is merely a conservative estimate based on the current market structure.

(Source: CoinShares)

Encryption investors react positively to the model Many cryptocurrency investors believe that this model is intuitive and easy to understand, with clear logic. You only need to understand the current market size of cash and gold, set a reasonable target percentage, and then do some simple calculations to find the enormous potential value of Bitcoin. This method shows that even if it only occupies a very small share, Bitcoin still has a very high return potential.

Practical Application of Top-Level Valuation Models The so-called TAM model is a top-down valuation method that first counts the largest market pool, such as cash, deposits, and gold, and then estimates the market share that a new emerging asset (such as Bitcoin) can capture. This method is very common in the valuation scenarios of technology startups and has gradually become one of the mainstream approaches in the analysis of digital assets.

Conclusion: Bitcoin does not need to fully take over the global monetary system; merely capturing a small portion of the cash and gold markets may offer several times the price growth potential. For investors seeking high-growth potential assets, this valuation model provides a clear and attractive investment logic.