Bitcoin and Everything Else

With all the recent market uncertainty and turmoil, I found it interesting that Bitcoin achieved a new 4-year high in a metric. As of April 16th, 2025, Bitcoin reached a 4-year market cap dominance related to the entire crypto industry at just under 64%. With over 37 million crypto tokens in existence today, this shows the absolute and utter dominance Bitcoin holds while also displaying the prominent truth about the rest of the crypto industry: just because you claim to have “new tech” or “new innovations” does not mean the market will decide your token has value. With creating and launching tokens easier than ever before, I believe Bitcoin’s market dominance will only continue to grow. I believe this because the base layer of Bitcoin was created in a way that it could operate for the next millennium with no meaningful or required changes to the underlying infrastructure. Bitcoin performs its duty of operating as the scarcest asset in the world in a perfect way while also creating the only meaningful digital time-chain in existence.

Tik-tok-next-block.

The sheer dominance Bitcoin has is even more apparent when you look at the Bitcoin to Ethereum ratio. Ethereum, the second largest cryptocurrency by market cap, and the once-dubbed “Bitcoin competitor” has failed to put up a fight against Bitcoin recently. In just the last year alone, ETH is down 61% against Bitcoin. It is hemorrhaging value while Bitcoin continues to absorb value. This is no anomaly, you would be hard-pressed to find any other cryptocurrencies that have stood up against Bitcoin over the long run. Bitcoin is built for generations. The crypto-casino is built for overnight gambles.

In the larger markets as a whole, it is interesting to see where Bitcoin compares to major indexes and leading tech stocks based on their drawdowns from all-time highs.

Bitcoin reached an all-time high of just over $109,000 on January 20th. Since then it has declined by close to 23%.

Compared to the indexes:

• $SPY ( ▲ 0.14% ) : ATH = 6,147.43 – Down 14.15%

• $NASDAQ ( 0.0% ) : ATH = 20,204.58 – Down 19.59%

• $DJIA ( ▼ 1.13% ) : ATH = 45,073.63 – Down 11.78%

Compared to leading tech stocks:

• $AAPL ( ▲ 1.4% ) : ATH = $260.09 – Down 25.08%

• $MSFT ( ▼ 1.03% ) : ATH = $468.35 – Down 20.27%

• $NVDA ( ▼ 2.87% ) : ATH = $153.13 – Down 33.1%

• $AMZN ( ▼ 0.99% ) : ATH = $242.06 - Down 28.26%

• $GOOG ( ▼ 1.38% ) : ATH = $208.70 – Down 25.33%

• $META ( ▼ 0.17% ) : ATH = $740.89 – Down 32.29%

• $TSLA ( ▼ 0.08% ) : ATH = $488.54 – Down 50.62%

Major indexes have declined the least, Bitcoin is in the middle, and tech stocks have declined the most. Based on the numbers, the potential upside when comparing them to reaching their previous all-time highs has the order being tech stocks with the most upside, Bitcoin in the middle, then the indexes with the least ground to gain to reaching their all-time highs.

However, I don’t believe taking these numbers at face value provides the true picture of the future.

The market caps of Apple, Microsoft, NVIDIA, Alphabet (Google), and Amazon are all higher than the market cap of Bitcoin. This does not make sense to me. Bitcoin is a decentralized, finite-supply digital asset that integrates itself into the global financial order. It is not a company relying on profits and losses or imaginary traditional finance metrics used to gauge how much a company can grow. The market cap of the Magnificent 7 companies and Saudi Aramco (the 6th largest company in the world) combined still do not reach gold’s market cap at approximately $22.5 trillion. Bitcoin’s comparison and competitor is not any of these companies, it is gold.

In an ever-increasing global and digital world, Bitcoin fixes every defect that gold has when trying to operate on a global and digital level. For Bitcoin to pass gold’s market cap at today’s prices it is nearly a 13x. That is the logical upside for Bitcoin in the short-term horizon of the next couple of years. For this reason, I believe Bitcoin has the highest potential upside.

There are many other reasons why Bitcoin continues to grow, and will continue to gain market cap. A tweet from Fred Kruger, shown below, summarizes a trend that I believe will continue to be more clear:

People for decades have used the equities markets to store their capital to avoid the clutches of inflation. When governments have access to money printers where they can continue debasing currencies, this is more important than ever. In times of uncertainty, and in an ever-increasingly digital world, Bitcoin will be the haven people turn to.

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.