Bitcoin (BTC) bulls and skeptics engaged in a debate on X on Tuesday, as analyst CrediBULL Crypto countered the prevalent assertion that digital assets are solely driven by speculation. The analyst pointed to gold's substantial $12 trillion market cap increase over the past year as evidence that all major markets operate on expectations and momentum.
This defense emerges at a time when the cryptocurrency market, currently valued at approximately $3 trillion, is attempting to recover from a recent downturn and seeking catalysts to stimulate growth.
Market Capitalizations, Speculation, and the Potential for Crypto's Growth
In a series of posts on X, CrediBULL argued that critics fail to grasp the fundamental principles of value formation across global markets. The analyst highlighted that gold's significant appreciation over the last 12 months occurred without any alteration to its underlying utility, suggesting that sentiment was the primary driver of this surge.
"Fam you think the intrinsic value of a gold rock magically increased by 100% over the last year? The $12 trillion added to gold’s market value over the last 12 months was due to speculation."
The market observer extended this reasoning to technology stocks that trade at high price-to-earnings ratios, contending that speculation is a universal market force, not an issue exclusive to the cryptocurrency sector.
The core argument presented is that "tens of trillions of dollars of speculative capital" are presently invested in these adjacent markets. The analyst posits that if even a fraction of this capital, less than 1%, were to flow into cryptocurrencies, it could potentially double the sector's total market 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 reaction from the community was divided. Some users questioned the logic, with one individual inquiring about the specific reasons why cryptocurrency should attract capital. CrediBULL responded by stating that the most effective catalyst for speculative investment is "green candles," referring to rising prices, which can generate a compounding effect.
Conversely, others argued that "90% of crypto is worthless." In response, the analyst advised investors to concentrate their efforts on the 10% of the market that is perceived to hold genuine value.
Broader Market Context
This discussion took place on the same day that Fundstrat's Tom Lee predicted Bitcoin could reach a new all-time high by the end of January 2026. Lee anticipates a rebound in equities, supported by a more accommodative stance from the Federal Reserve, which he believes could positively influence sentiment across riskier assets.
Furthermore, Lee drew parallels between the recent deleveraging events and the market reset that occurred after the FTX collapse in 2022, suggesting that the cryptocurrency market may be nearing a period of stabilization.
In parallel, institutional interest in the crypto space continues to grow. On December 2, Vanguard announced that it would allow its 50 million clients to trade Bitcoin (BTC), Ethereum (ETH), XRP, and Solana ETFs. This marks a significant shift for the asset management giant, which had previously shown reluctance towards the sector.
Vanguard's announcement came despite mixed flows into cryptocurrency ETFs. However, consistent inflows into funds managed by Fidelity and ARK indicate that major institutional players have not completely withdrawn from the market, even amidst recent volatility.