Bitcoin (BTC) advocates confronted skeptics recently as analyst CrediBULL Crypto challenged the widespread belief that digital currencies are merely driven by speculation. He referenced a significant increase in gold’s market cap, which has risen $12 trillion in the past year, illustrating that all major markets operate based on expectations and momentum.

This argument arrives amid a crucial moment for the crypto market, which currently values around $3 trillion and is striving to recover from a downturn while seeking new drivers for growth.

Market Capitalizations, Speculation, and Crypto’s Potential Growth

In a discussion on X, CrediBULL emphasized that critics fail to understand how value develops across various markets, pointing out that gold’s price surge over the last 12 months occurred without any change in its fundamental utility. He argued that the increase was primarily speculative in nature.

“Fam you think the intrinsic value of a gold rock magically increased by 100% over the last year?” - CrediBULL.
Translation: Dude, do you really believe the actual worth of gold has doubled just like that?

He extended this reasoning to technology stocks that are traded at high price-to-earnings ratios, asserting that speculation influences all markets, not just cryptocurrencies. His main idea is that enormous speculative capital resides in these markets, and should even a fraction of it enter the crypto sector, it could potentially double its total value.

“Why are you worried about some drawdown when we are sitting at a 3T marketcap which is peanuts in the grand scheme of things?” - the trader remarked.

He noted a mixed response from the community, with some users questioning his logic. CrediBULL responded that the best catalysts for speculative investments are ‘green candles,’ or price increases, which can trigger a momentum effect.

Some argued that “90% of crypto is worthless,” to which the analyst advised focusing on the 10% that holds real perceived value.

Broader Market Landscape

Meanwhile, on the same day, Fundstrat’s Tom Lee forecasted that Bitcoin could achieve a new all-time high by the end of January 2026. He mentioned an anticipated rebound in equities thanks to a more accommodating Federal Reserve, positively affecting sentiment in riskier assets.

In addition, he compared recent liquidations in the crypto market to the 2022 recovery after the FTX collapse, believing that crypto might be nearing stabilization. Institutional interest in cryptocurrencies remains high, as evidenced by Vanguard’s recent move to allow trading of BTC, Ethereum (ETH), XRP, and Solana ETFs to its 50 million clients, marking a significant shift for the asset management titan, which had been hesitant to engage in the sector. Despite mixed ETF flows, consistent inflows into funds from Fidelity and ARK indicate that significant players are not completely retreating despite recent fluctuations.