According to new analysis coming in, Bitcoin does not need to go through a parabolic trend to hit the $1 Trillion market cap. Most of its wealth creation is still to go and it could very well do that in the upcoming 6 years.
Bitcoin does not need a parabolic trend to get to $1 trillion
According to a forecast from the Bitcoin investment advisory resource, Byte Tree, it can be suggested that Bitcoin will be achieving wild new heights even if there is conservative growth. The growth rates might sustain for a very long time but it will slow down as the currency starts to mature. According to the new trendline, there are implications that Bitcoin prices would be loitering around the $10,000 mark until late 2020. The $20,000 mark should be pretty common by February 2022 and by March 2023, Bitcoin prices can see the margins of $40,000. These revelations are certainly profitable for most investors.
If 18 million Bitcoins quadruple in price, the entire market cap would definitely cross half a trillion dollars. That is very much possible and at this rate, the network has very good chances of reaching the $1 trillion mark by 2025. Considering this, more wealth can be created in the future than what had been there in the past. This has been seen after the latest rally where Bitcoin prices soared as high as $13,800. There had been some sideways action since then and the dip resulted in the price going to $9,350 last week. Now the markets are recovering and are hovering around $11,000.
A tech-stock style ‘Mega-Trend’ is inbound
As per Bitcoin Evolution the annualized investor returns from Bitcoins is around 212%. Byte Tree, however, says that these figures would not be so aggressive forever. However, slowing down does not mean a bear market as is true for other assets? The trend lines are quite steep and it cannot be expected that such market trends would continue indefinitely. However, credible assets are expected to keep on moving higher year after year.
Looking at the leading tech stocks show that they keep growing stronger. This is because the Internet is like an established megatrend. Even Bitcoins shine in its presence and this would most likely continue for years. The idea that Bitcoin prices would go as high as $40,000 is certainly moderate when you compare it with some other predictions. There are some people who believe that Bitcoin prices would go as high as $1 million, though that could be quite absurd. But there are chances that the cryptocurrency would hit $20,000 at the end of the year.
Trading in Bitcoins at such interesting times could be dangerous, but thrilling. Most analysts are encouraging people to invest in Bitcoins now but exercise caution and patience as well. If you use something like Bitcoin Evolution at such a time, chances are you could reap better profits than what you would do without a professional approach.