Bitcoin prices could be on the biggest breakout crisis of all time, with analysts at FundStrat, Ark Invest, Standard Chartered and BlackRock hoping they will continue to rise in the coming years.
One important theme among most analysts is that Bitcoin (BTC) is the digital version of Gold, the top-safe haven. Like gold, Bitcoin is a rare resource in high demand, and explains why analysts see it as a valuable store.
Bitcoin is one of the best performing assets ever, as its price has grown from under $1 in 2009 to $104,000 today. Market capitalization has risen to more than $2 trillion. This may continue if the analyst estimate is accurate.
The ongoing surge in Bitcoin prices may blow up gold in terms of market capitalization in the era. According to data, gold is the world’s most valuable resource, with a market capitalization of $22 trillion, and Bitcoin is currently the fifth most valuable.
This performance is noteworthy given that gold has been in use for thousands of years, but Bitcoin is only 16 years old. So, since all factors remain constant, Bitcoin could turn gold over time as institutional and sovereign demand rises.
The first phase of the surge in Bitcoin prices was driven primarily by retail investors as companies remained skeptical. As a company such as Tesla, Coinbase, Strategy, Blockbuy-In, it is currently moving into the adoption phase of the system.
In the next stage, the country can begin purchasing Bitcoin. El Salvador was the first country to do so, and currently holds 6,174 coins worth $640 million. Donald Trump has promoted the idea of a strategic Bitcoin reserve, but some US are considering the same. It is reportedly that more countries, such as the Czech Republic and Poland, are considering adding BTC to their reserves.
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If the market capitalization of the Bitcoin price matches that of gold
Bitcoin’s market capitalization is $2 trillion. This means it needs to rise 1,000% to match the valuation of gold at $22 trillion.
Based on current distribution, a 1,000% jump will raise the price of Bitcoin to $1,040,000, matching the gold rating. This goal is consistent with predictions from experts in several industry.
Ark Invest predicts that Bitcoin will reach $2.4 million by 2030, resulting in a total dilution of its $50 trillion market capitalization. BlackRock’s $700,000 target valued at $14.7 trillion, while Michael Saylor’s $5 million medium-term target valued at $105 trillion.
BTC price short-term forecast
Bitcoin Price Chart | Source: crypto.news
Bitcoin can have a strong bullish breakout as it slowly forms a popular continuation pattern: cup and handle patterns. The top of this pattern is $108,000, but its depth is 32%. If you measure the same distance from the top of the cup, your price target is $142,670.
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