The price of Bitcoin is down sharply at the moment, but that hasn’t stopped US firm Ark Invest from making very bullish predictions on the asset. According to the investment firm, the price of Bitcoin could reach $1 million by 2030, which is eight years from now.
In its annual research report titled “Big Ideas” and published on January 25, the American investment firm shared its predictions for the crypto sector and its top assets over the next few years. The boldest of these predictions concerns the price of Bitcoin, which the company predicts will hit $1 million by 2030.
Additionally, the report states that Bitcoin’s market capitalization is still a fraction of global assets. After its recent 45% plunge, that market capitalization is currently at $714 billion, slightly more than that of the world’s eighth largest company, Berkshire Hathaway.
According to the same source, Bitcoin’s market capitalization is likely to change as more countries adopt it as legal tender.
“According to our estimates, the price of Bitcoin could exceed $1 million by 2030”.
Bitcoin’s long-term goals
The report justifies this bold price prediction with on-chain data that indicates Bitcoin holders are focused on its long-term goals.
Thus, the report highlights that the cumulative trading volume of Bitcoin increased by 463% in 2021. With an annual payment volume of just over $13 trillion, the BTC network surpassed the company’s figures of VISA credit cards over the past year.
Technological evolutions like the launch of Taproot, the adoption of the Lightning layer 2 network and the integration of BTC in decentralized finance are also key factors for growth.
In November 2021, ETFs (exchange traded funds), governments and corporations held 8% of Bitcoin supply.
“Bitcoin’s institutional holder base appears to be expanding following the launch of more regulated products and their adoption by businesses and governments.”
In addition, Bitcoin mining, which has become much more environmentally friendly, is now a lucrative business.
“Converting energy into a monetary asset can be important in this time of geopolitical uncertainty and volatility financial markets”.
A bright future for Ethereum
The report does not just extol the virtues of Bitcoin. It also gives optimistic predictions about Ethereum for the next decade.
Ethereum is “likely to hold a portion of the $123 trillion global money supply.” Indeed, the asset is, according to the report, a benchmark collateral for DeFi and NFTs.
Additionally, the report claims that regulators are prioritizing crypto innovations, especially Ethereum-based DeFi projects. For these reasons and more, Ark estimates that Ethereum’s market capitalization could surpass $20 trillion within the next decade.
“According to our research, Ethereum could replace many traditional financial services. In addition, its native token, ETH, could compete with global currencies”.
Considering its deflationary pattern and current circulating supply, Ethereum’s price could reach close to $168,000.
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.