The price of Bitcoin, the world’s largest cryptocurrency, has shown significant volatility in recent weeks, leaving investors puzzled and seeking answers.
In March 2024, Bitcoin reached an all-time high of $73,750.07, sparking celebrations among bulls and uncertainty among bears.
Despite this milestone, the bear market took hold, causing the price to drop as low as $61,000 before stabilizing at around $64,581, marking a 12.55% decline from its peak.
Bitcoin’s value has surged by 26% over the past month and a staggering 133% since the start of the year.
The projected worth of one Bitcoin by the year 2030, according to experts and market analysts, stands at an astonishing $3.8 million, demonstrating the cryptocurrency’s continuous growth and expanding influence.
Today, Bitcoin is trading at approximately $64,714, with a daily trading range of $62,355 to $64,834.24.
It occupies the top spot in the market with a market capitalization of $1.27 trillion and a circulating supply of 19,661,956 Bitcoins per CoinMarketCap’s data.
Reasons for the Bullish Bitcoin Prediction
In her outlook, Cathie Wood, CEO at Ark Invest, envisions a stunning Bitcoin price milestone, suggesting it could be worth up to $3.8 million by 2030 as a result of heightened institutional buying and imminent ETF approvals.
Institutional investors have been increasingly allocating funds to Bitcoin, with over $65 billion invested in crypto assets as of March 2024.
The approval of the first Bitcoin ETFs by the SEC in January 2024 marked a significant turning point for the cryptocurrency market, driving demand and record inflows into US ETFs.
Wood’s prediction aligns with other bullish outlooks on Bitcoin, with some predicting it could reach close to $100,000 by 2025.
Bitcoin has demonstrated strength following the Fed’s decision to leave interest rates unchanged, despite market fluctuations.
The increasing involvement of institutions with Bitcoin and the expanding use of digital assets and blockchain technology bolster the optimistic outlook.
According to ARK Invest’s assessment, there is a strong possibility that the aggregate value of digital assets could surpass $220 trillion by the year 2030.
Industry insiders predict that the upcoming Bitcoin halving in April will significantly boost demand as a result of decreased supply.
The Bitcoin halving event set for April might cause a sharp rise in value as investors scramble to acquire the limited supply of freshly mined Bitcoins.
At the Reflexivity Research conference, Wood expressed her belief that the upcoming halving will bring about effects similar to those observed in previous instances.
During the one year following the occurrence of the Bitcoin halvings in 2012, 2016, and 2020, its worth underwent substantial increases amounting to 8,069%, 284%, and 559% respectively.
In Wood’s opinion, the price and adoption of Bitcoin have room for significant expansion.
The crypto market is currently developing an online financial system, aimed at cutting out intermediaries and enhancing operational effectiveness.
The data from CryptoQuant demonstrates that the Bitcoin market’s funding rates provide insights into the current balance of power between buying and selling forces.
High funding rates can trigger a lengthy liquidation cascade and potentially signal a bearish trend.
Funding rates must be positive, but unduly large amounts could suggest turbulence within the market.
A shrinkage in funding rates is an indication that the futures market may be experiencing less trading volume.
This decrease could lead to reduced selling pressure and potentially contribute to a lasting increase in Bitcoin’s price.
The price prediction of $3.8 million by 2030 may seem ambitious but, given the consistent growth and adoption of Bitcoin, it is not impossible.
As more institutional investors embrace cryptocurrency and regulatory clarity emerges, the potential for significant price increases remains high.