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Since November 5, President-elect Day Donald Trump After serving another term in office, Bitcoin saw a notable uptrend, reaching a new all-time high of $93,300.
Since then, Bitcoin has been trading within a narrow range between $89,000 and $92,000, allowing for a potential move towards the $100,000 level. This raises an interesting question about whether the price… $1 million per coin is possible over the next decade.
Long-term vision for investors
Market expert VirtualBacon conducted an in-depth analysis of these possibilities, delving into the numbers, trends, and catalysts that could push Bitcoin to experience an almost 1,000% rally from its current price levels.
Within the current market cycle, expert Expectations Bitcoin could reach $200,000 in the next year or two. However, he points out that while this achievement is significant, altcoins may offer higher returns with greater risk, often collapsing by 80% to 90% in bear markets.
In contrast to altcoins, which face increasing regulatory scrutiny, Bitcoin is emerging as a safer long-term investment. VirtualBacon says Bitcoin’s potential is not just limited to the next few years, but a decade or more.
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To understand why Bitcoin’s price reached $1 million, VirtualBacon stresses that investors need to think about it Basic benefit As a store of value. Bitcoin’s fixed supply of 21 million coins, its global accessibility, and its resistance to censorship and manipulation make it a compelling alternative to traditional financial assets.
The expert suggests that if Bitcoin is recognized as the digital gold of the 21st century, it should reach a level Market value Rivaling gold’s estimated $13 trillion is not just a theoretical possibility, but a “logical consequence.”
Key drivers of this potential growth include increased participation from asset managers, corporate treasuries, central banks, and wealthy individuals. Recent data suggests that Bitcoin exchange-traded funds saw record inflows, with $1 billion invested last week, reflecting growing institutional confidence.
In addition, discussions between companies, such as Microsoft Looking Bitcoin reserves increase its strategic value. Wealthy individuals have also begun to adopt Bitcoin as a standard portfolio allocation, with even a modest 1% investment becoming commonplace among billionaires.
What does it take for Bitcoin to reach $1 million?
For Bitcoin to reach the million-dollar mark, two critical factors must be analysed: global wealth growth and wallet allocation. VirtualBacon notes that in 2022, total Global wealth It was estimated at about $454 trillion, and expectations indicate that this number may grow to $750 trillion by 2034.
Currently, gold holds approximately 3.9% of global wealth, while Bitcoin holds only 0.35%. If Bitcoin’s allocation in global wallets rises to just 3%, which is still far less than gold’s share, its market value could rise to $20 trillion, pushing the price to $1 million per coin.
Historically, the market value of gold has seen significant growth following the launch of… Exchange-traded funds in 2004, with its portfolio allocation increasing from 1.67% to 4.74% over the next decade.
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If Bitcoin follows a similar path, its allocation could rise from 0.35% to 1.05% or more, which translates to a market cap of about $7.92 trillion, equivalent to about $395,000 per Bitcoin. Therefore, reaching $1 million does not require Bitcoin to outperform gold; It should account for about 57% of the expected market value of gold by 2034.
With gold accounting for 4.7% of global portfolios compared to Bitcoin’s 0.35%, a modest increase in Bitcoin’s share of global wealth to 3% – just 60% of gold’s allocation – could “easily” lead to a market capitalization of $20 trillion and a price of Million dollars. a point.
At the time of writing, Bitcoin is trading at $92,240, up 7% each week.
Featured image of DALL-E, chart from TradingView.com