Bitcoin Could Overtake Gold in Next Bull Cycle, Binance Co-Founder CZ Says

Summary

• Binance co-founder Changpeng Zhao believes Bitcoin could surpass gold as governments reconsider strategic reserves during another major cryptocurrency bull cycle.
• Gold remains roughly ten times larger than Bitcoin, while Zhao expects sovereign crypto reserves to favor Bitcoin over rival digital assets.
• Stablecoins could lead AI payment adoption, while automated trading may develop earlier because markets demand rapid information processing and efficient execution.

Binance co-founder Changpeng “CZ” Zhao has predicted that Bitcoin could overtake gold’s market capitalization during the next cryptocurrency bull cycle. According to Zhao, achieving that milestone would require governments and institutions to reconsider how they structure strategic reserve holdings.

He presented the projection during the Bitcoin Asia 2026 conference in Hong Kong, where he discussed Bitcoin’s expanding global role. Gold currently holds a market capitalization approximately ten times larger than Bitcoin’s valuation, leaving a considerable gap between both assets.

However, Zhao believes Bitcoin could reduce that difference as investors increasingly recognize digital assets as potential reserve instruments. Such a transition would involve more than rising Bitcoin prices because gold already supports mature valuation, reserve, and trading systems.

Major economies have developed these structures over many decades, giving gold an established position within sovereign financial strategies. Consequently, replacing that framework with Bitcoin would require gradual institutional changes rather than a single period of strong market performance.

Zhao expects sovereign governments to allocate more reserves toward digital assets as cryptocurrency markets and supporting infrastructure mature. Under his projected structure, Bitcoin could represent more than 50 percent of national strategic cryptocurrency holdings.

Ethereum and BNB could also receive allocations, although Bitcoin would likely maintain the largest position within those portfolios. Bitcoin gained more than 25 percent during the previous week, strengthening its recovery from an earlier period of market weakness.

Meanwhile, gold climbed above $4,600, preserving its substantial valuation advantage despite Bitcoin’s stronger market performance. Bitcoin traded near $79,700 on Thursday, representing a 1.5 percent increase during the preceding 24 hours. Nevertheless, Zhao’s forecast remains tied to the next bull cycle rather than Bitcoin’s current market valuation alone.

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Zhao Identifies Stablecoins as Starting Point for AI and Cryptocurrency Integration

Zhao also examined how artificial intelligence could interact with cryptocurrency across trading platforms and payment networks. He expects this integration to begin with stablecoins because their predictable values make them suitable for automated transactions.

Once artificial intelligence systems accept stablecoins, Zhao believes developers could add Bitcoin payments without making extensive technical changes. However, he expects AI-assisted trading to develop before payment systems controlled entirely by artificial intelligence.

Trading requires rapid information collection, immediate news interpretation, chart analysis, and efficient execution across constantly changing market conditions. These requirements create a practical use case for artificial intelligence because automated systems can process multiple signals simultaneously.

By comparison, consumers can already complete many routine payments efficiently through conventional bank cards and existing digital payment services. Zhao estimated that artificial intelligence could increase trading efficiency tenfold by processing extensive information and reacting rapidly to market developments. Moreover, AI systems could help traders compare charts, news reports, liquidity conditions, and price movements within shorter periods.

Bitcoin Reserve Outlook Extends Beyond Market Performance

Zhao’s comments connected Bitcoin’s potential reserve status with technological changes that could expand cryptocurrency adoption beyond conventional investment. Stablecoins could introduce artificial intelligence systems to blockchain transfers before those platforms incorporate Bitcoin and other volatile digital assets.

Additionally, automated trading could increase cryptocurrency market activity by improving how participants analyze information and execute investment strategies. Zhao’s projection ultimately depends on governments and institutions assigning Bitcoin a larger role within their reserve portfolios.

At the same time, stablecoins and AI-assisted trading could broaden cryptocurrency utility across financial markets and digital payment infrastructure.

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