VanEck Forecasts Bitcoin Soaring to 3 Million and Emerging as a Global Reserve Asset Projecting 119 Billion
VanEck, an investment manager known for its bullish stance on Bitcoin (BTC), predicts that the cryptocurrency could reach a valuation of $1 million in the near future. Matthew Sigel, the Head of Digital Assets Research at VanEck, stated during an interview with CNBC’s Squawk Box on October 28 that their model suggests Bitcoin could be trading at $3 million by 2025. Sigel believes that Bitcoin has the potential to become a global reserve asset held by central banks. He projects this based on a realistic 16% compound annual growth rate over several decades, assuming a modest 2% allocation of Bitcoin within global reserves. While this projection may seem extreme, Sigel believes it is achievable if Bitcoin continues its current trajectory.
VanEck’s bold prediction aligns with their previous statement that Bitcoin could reach a market capitalization of $61 trillion, or approximately $2.9 million per coin, by 2050. If Bitcoin were to achieve this valuation, it would become one of the most valuable assets in the world, surpassing even gold. However, for this price level to be attained, Bitcoin would need to be supported by clear regulations and recognized as a legitimate currency by governments.
The outcome of the upcoming U.S. presidential election on November 5 is seen as crucial for Bitcoin. A Donald Trump victory is viewed as a major boost for the cryptocurrency, as Trump has expressed support for the digital asset space and aims to foster innovation in the United States. Analysts at Bernstein, including Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, predict that if Trump wins, Bitcoin could soar to new all-time highs of $80,000 to $90,000. Standard Chartered also forecasts that Bitcoin could reach $125,000 by the end of 2024 if Trump wins, or $75,000 if Kamala Harris wins.
Currently, Bitcoin is trading at $68,690, showing a 1.45% gain in the last 24 hours. The price remains above the 50-day and 200-day simple moving averages, indicating a bullish trend for both the short and long term.
