VanEck predicts Bitcoin will reach 3m and become a global reserve asset valued at 119 billion
VanEck, an investment manager known for its bullish stance on Bitcoin (
BTC
), is confident that the pioneering cryptocurrency is poised to exceed a valuation of $1 million in the near future. Matthew Sigel, the Head of Digital Assets Research at the firm, shared during an interview on CNBC’s Squawk Box on October 28 that he anticipates Bitcoin to be trading at $3 million by 2025. Sigel’s prediction is based on VanEck’s model, which projects that Bitcoin will evolve into a global reserve asset held by central banks, with a modest 2% allocation within global reserves. This seemingly extreme projection is underpinned by a realistic 16% compound annual growth rate over several decades.
According to Sigel, VanEck’s model indicates that Bitcoin will become a reserve asset used in global trade and held by global central banks at a very modest 2% weight by 2050, leading to a $3 million price target for the cryptocurrency.
VanEck’s bold prediction of Bitcoin potentially reaching a $61 trillion market capitalization, or around $2.9 million per coin by 2050, is a significant affirmation of their optimistic outlook on the cryptocurrency. This valuation would position Bitcoin as one of the most valuable assets in the world, surpassing gold, provided that these competing assets experience minimal growth by 2050.
For Bitcoin to achieve this projected price level, it will need to be supported by clear regulations, such as government recognition as a currency. The outcome of the U.S. presidential election on November 5 is pivotal for Bitcoin, with a Donald Trump win considered a positive development for the cryptocurrency. Trump has shown support for the digital assets space and aims to position the United States as an innovation hub in this sector.
In light of the upcoming election, Sigel emphasized that Bitcoin is facing a favorable setup ahead of the polls, pointing to historical patterns observed during the 2020 elections, where Bitcoin experienced low volatility before the announcement of the winner, followed by a surge in buying activity and a volatile rally as new buyers entered the space.
Furthermore, analysts at Bernstein, including Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, forecast that if Trump wins, Bitcoin could surge to a new all-time high of $80,000 to $90,000. Similarly, Standard Chartered projected that Bitcoin would reach $125,000 by the end of 2024 if Trump wins, and $75,000 if Kamala Harris wins, both representing record highs.
As of the time of writing, Bitcoin is trading at $68,690, having gained 1.45% in the last 24 hours and 2.25% on the weekly chart. The cryptocurrency appears bullish in both the short and long term, as its price remains above the 50-day and 200-day simple moving averages.