Asset manager VanEck predicts Bitcoin will hit a $52 million price if adopted as a reserve asset globally.
Leading asset manager VanEck issued a bullish outlook for Bitcoin in a report issued this week. The New York City-based firm considers that the largest crypto by market value could hit a base value exceeding $2.9 million in the year 2050.
The firm behind VanEck Bitcoin ETF (HODL) issued an even more bullish prediction that BTC could test $52 million in a bull run. The research team held that if the present reserve currencies sustain the present decline, Bitcoin could emerge as an attractive option. Doing so would prompt scaling networks to improve, lifting the BTC price to $52.386M by that year.
Bitcoin exchanges hands in a range around $67,000, representing a 98740.5% rise in 11 years, per CoinGecko data. VanEck research duo Patrick Bush and Matthew Sigel consider that the value could surge as BTC is widely utilized in international trade. The report considers that as both a store of wealth and a medium of exchange, Bitcoin would become an invaluable addition as a reserve asset.
VanEck Bullish Bitcoin to Test $2.9 Million
Bitcoin’s usefulness would attract central banks and long-term investors who desire to hold more BTC. Doing so would create a deficit in the amount accessible in the floating supply, thereby pushing the price further.
VanEck researchers examined the global GDP, noting that current growth projections indicate roughly 2.5% of the central banks will hold their assets in BTC. Such an incident would arise in the base projection sufficient to push the BTC price to $2.9 million.
VanEck reports that when the total trade executed worldwide rose significantly, and the digital currency circulation declined, BTC could test the stratospheric levels exceeding $52 million.
Crypto research analyst Bush notes that scaling networks is critical for Bitcoin to realize wide usage. The digital assets research head Sigel echoes this perspective, reiterating that adequate scaling is mandatory for Bitcoin to become a vital exchange medium. The noncompletion of adequate scaling would break the core thesis for BTC’s meteoric rise to a 7-figure price.
VanEck report captures a bearish outlook, with the analysts predicting that the unfortunate turn of events would see the asset price slightly surpass $130,0000. They argued that such is bound to occur if more BTC remains in circulation and total trade transactions bearing the assets are lower.
VanEck considers scaling networks – typically identified as sidechain or layer-2 (L2) networks- designed to enable faster and cheaper Bitcoin usage via supporting blockchains.
Currently, the Bitcoin network is both expensive and slow. Overcoming the challenges necessitates deploying scaling options, including the Lightning Network.
VanEck report predicts the likelihood of financial entities soon competing to build L2s. The creators will likely aim to house each’s BTC activities, such as exchange, lending, and trading.
Bitcoin Bullish Breakout?
Crypto analyst Ali Martinez echoes the bullish outlook of Bitcoin in a July 24 X post. The analyst spotlighted that Bitcoin crossed the descending trendline, indicating an upward movement.
Informed by this observation, the analyst indicates the BTC is headed for an exchange above $67,000. To affirm the bullish breakout, Martinez was categorical in saying BTC needs to rediscover the $66,450 level.
Moreover, Martinez points out that the relative strength index (RSI) is already broken above the descending trendline. Such signals the increasing momentum and potential for the bullish sentiment. With an RSI value above 50, the typical bullish condition is met.
Capriole Fund’s Charles Edwards offers a bullish prediction, highlighting the Hash Ribbons buy signal is activated on the BTC chart. The Hash Ribbons indicator features the 30-day and 60-day MA (moving averages) of the BTC hash rate.
Notably, the buy signal historically emerges ahead of the massive price surge. Along with the technical analysis, the Hash Ribbons buy signal echoes the bullish breakout and likelihood of Bitcoin sustaining upward momentum.
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