(Note to mods, this isn't a post about price, this is really a post about fiat inflation.)
As you know, the market cap of BTC recently surpassed $1T USD. This milestone was noted by multiple news organizations. Some have opined that this is a sign that BTC has become overvalued.
I can't predict what BTC price will do in the short term. Whether it will advance or retreat is beyond my ability to forecast. But I can say that while a market cap of $1T USD is impressive I don't believe it is any indicator of being overvalued.
A trillion is a big number. It is beyond most of our comprehension. It is a million millions. It is a thousand billions. It sounds very impressive.
But a trillion pieces of something vanishingly small isn't impressive at all. A trillion grains of sand would be nothing more than a large pile. You'd probably want to climb up it for fun.
Measuring BTC market cap in dollars means measuring it by a shrinking yardstick. While dollars aren't "vanishingly small" yet, consider the following. In 1930 the average price for lunch in a big city was 38 cents. Today a McDonald's meal in New York City can cost over $10. Personally I'm blown away at how much food costs today versus only a few years ago.
Let's put $1T USD into perspective. The US government is in the verge of "borrowing" (i.e. printing) $1.9T for the 2021 stimulus act. That's almost $2T on top of the $3T the government would "borrow" (i.e. print) just to fund normal operations.
A $1T market cap for BTC means the market is currently valuing all the BTC in the world at only about 20% of what the US government is going to print in 2021 alone. This ignores all the past US money printing, all the future US money printing, leave alone the European and Asian money printing.
To me that isn't a number to worry about at all. As dollars shrink and investors seek protection, BTC will only grow.