Bitcoin price may be on the verge of a big breakout to its all-time high
Analysts from Fundstrat, Ark Invest, Standard Chartered, and BlackRock expect it to keep rising in the coming years.
One key theme among most analysts is that Bitcoin (BTC) is the digital version of gold, a top safe haven. Like gold, Bitcoin is a scarce resource with high demand, which explains why analysts see it as a store of value.
Bitcoin has been one of the best-performing assets ever, as its price has moved from below $1 in 2009 to $104,000 today. Its market cap has jumped to over $2 trillion, a trend that may continue if analysts’ estimates are accurate.
The continued Bitcoin price surge may also see it blast past gold in terms of market cap over time. Data shows that gold is the most valuable resource globally, with a market cap of $22 trillion, while Bitcoin is currently the fifth most valuable.
This performance is notable, considering that gold has been in use for millennia, while Bitcoin is only about 16 years old. As such, all factors constant, there are odds that Bitcoin will flip gold over time as institutional and sovereign demand rises.
The first phase of the Bitcoin price surge was mostly driven by retail investors, as companies remained skeptical. It has now moved into the institutional adoption phase, as companies like Tesla, Coinbase, Strategy, and Block buy in.
The next phase could see countries start buying Bitcoin. El Salvador was the first country to do so, currently holding 6,174 coins worth $640 million. Donald Trump has promoted the idea of a Strategic Bitcoin Reserve, while some U.S. states are considering the same. More countries like the Czech Republic and Poland are also reportedly thinking about adding BTC to their reserves.
Bitcoin price if its market cap matches that of gold
Bitcoin has a market cap of $2 trillion, meaning that it would need to rise by 1,000% to match gold’s $22 trillion valuation.
Based on the current circulation, a 1,000% jump would see Bitcoin’s price rise to $1,040,000 to match gold’s valuation. This target aligns with predictions from several industry experts.
ARK Invest predicts that Bitcoin’s price will reach $2.4 million by 2030, resulting in a fully diluted market cap of $50 trillion. BlackRock’s $700,000 target would value it at $14.7 trillion, while Michael Saylor’s mid-term target of $5 million would lead to a $105 trillion valuation.
BTC price short-term prediction
There are odds that Bitcoin will have a strong bullish breakout, as it is slowly forming a cup-and-handle pattern, a popular continuation pattern. The upper side of this pattern is at $108,000, while its depth is 32%. Measuring the same distance from the cup’s upper side gives it a price target of $142,670.