How much money is US$50 trillion? Enough to buy all the gold ever mined, all the real estate in New York City, and 1,000 aircraft carriers – with enough left to eradicate global hunger for the next 500 years. It’s a lot of money, is what we’re saying.
It’s also a number we’ve seen more than once in the crypto headlines. Back in October 2024, BlackRock CEO Larry Fink told analysts that Bitcoin’s market capitalization (roughly $2.3T as we go to press) could eventually match the U.S. housing market, which also happens to be around $50 trillion. If and when that happens, the price of Bitcoin (BTC) could reach something like $2.5 million.
Now we’re seeing that $50-trillion figure in the latest crypto forecasts. Bitwise CEO Hunter Horsley projected a $50T market cap for Bitcoin this past April; on Tuesday, private equity investor Dan Tapiero announced the merger of 10T Holdings and 1RoundTable Partners, thus creating a new brand called 50T. This reflects Tapiero’s revised estimate for the larger digital asset market to reach $50 trillion “in the next decade.”
So where’s the ka-boom? Instead of a moonshot, the price of Bitcoin has fallen from around $120K on Tuesday to $116,255.23 at press time. Let’s do our usual digging and see whether it’s time to fish or cut bait with our crypto betting and investing.
What’s Happening to Bitcoin?
The whales are selling. SpaceX shed 1,308 Bitcoin this past Monday, marking the first time Elon Musk’s company has touched its portfolio in three years. That was about $155 million worth of BTC.
Which was nothing compared to the 30,109 BTC (about $3.5 billion) that a certain unnamed whale offloaded earlier this month. Again, much of that activity came from “dormant” wallets, some lying unused for nearly 15 years.
Investors are understandably nervous. Back in June, Galaxy Digital – the asset managers used by said whale to liquidate their holdings – quietly shed some $1 billion worth of Bitcoin without the crypto markets taking much notice. Musk isn’t just the tip of the iceberg here, but that SpaceX sale appears to have inspired copycats to move at least some of their own crypto.
Why Sell Now?
Asset relocation. It can often be smart practice to sell off a slice of your portfolio during boom times and lock in those profits; however, in Musk’s case, he also has concerns about the strength of his businesses, which have tanked as his war of words with President Trump continues to smolder.
This wouldn’t be the first time Musk has sold at what looks an inopportune time. In mid-2022, during a second quarter that saw Bitcoin plunge in value from $46K to $19K, Tesla converted 75% of their Bitcoin holdings to fiat currency. That decision, prompted by the ongoing COVID-19 lockdowns in China and elsewhere, may have cost Musk around $3.5 billion.
To be fair, Musk stressed at the time that he wasn’t selling any of his own crypto, and that he remained bullish about its growth potential. He’s also been more of a proponent for altcoins, especially Dogecoin; Musk repeated this mantra shortly before Tesla unloaded almost all their remaining BTC in October 2024 to various unknown wallets.
Should I Sell Too?
The takeaway here is to avoid hitting the panic button and dumping your Bitcoin just because Musk and other major players have sold off. Unless you’re also running several international companies and trying to duck and weave while the Trump Administration puts tariffs on and off the table, your finances won’t be facing the same pressures that are motivating these captains of industry.
That doesn’t mean there isn’t some money to be made/saved in the very short term. If you’re more of a day trader, this market volatility will be right up your alley; if you’re more of an index-fund type, consider holding that BTC, and keeping that $50-trillion forecast in mind.
