Crypto Strategist Foresees Bitcoin Supercycle to $9 Million

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In a remarkable forecast of Bitcoin’s future value, one cryptocurrency strategist, known as @RiggsBTC, is predicting an “unprecedented” surge for the digital asset. The momentum building up since the last quarter of 2022 is being described as the start of a “supercycle,” which could see Bitcoin’s price escalating to an astonishing $9 million within the next twenty-four months. Following a downturn that brought the cryptocurrency down to a mere $15,000, this bold assertion suggests an impending rapid price appreciation.

At the core of this anticipated price rally, a looming supply shock stands prominent, especially with the next Bitcoin halving event—when the reward for mining new blocks is halved, thus diminishing the rate at which new bitcoins are generated—expected to occur in early April 2021. Given Bitcoin’s fixed supply limit of just under 21 million coins, many believe that a dwindling supply, coupled with steady or increasing demand, is a recipe for higher valuations.

The @RiggsBTC analysis also highlights the impact of global wealth on the potential Bitcoin surge. If merely 5% of the world’s total wealth, which is conservatively valued at over $1 quadrillion, finds its way into Bitcoin, the insatiable demand in the face of the capped supply could send prices skyrocketing. By these calculations, a $50 trillion infusion into the cryptocurrency’s market could be possible.

From @RiggsBTC’s perspective, only about 5 million bitcoins will be actively traded or available, with many currently held in “weak hands”—investors more likely to sell during volatility—shifting towards more formidable players, including nation-states and institutions. It is this transition that could serve as the catalyst for an extraordinary market rally.

Supporting this bullish outlook is Pierre Rochard, VP of Research at Riot Platforms, who draws attention to the prevailing macroeconomic environment that could further bolster Bitcoin’s market position. With the U.S. government’s expenditure hitting $6 trillion, which includes hefty interest payments on national debt, the contrast between government fiscal policies and Bitcoin’s under $1 trillion market cap, seems stark. At the time of writing, Bitcoin’s market capitalization was reported to be at $860 billion, according to CoinMarketCap.

While the crypto community’s eyes are trained on the halving event and favorable economic conditions, regulatory developments are also playing a significant role in setting the stage for potential growth. A major focal point is the anticipation surrounding the U.S. Securities and Exchange Commission’s (SEC) potential approval of the first spot Bitcoin Exchange Traded Funds (ETFs) in December 2023. Such a financial product could provide institutional investors a pathway to Bitcoin investment within a regulated framework, possibly spurring a fresh influx of capital. Historical precedents, however, suggest that the market’s reaction to new derivative products like these could lead to either a significant price peak or a subsequent decrease, as was the case in December 2018 after the introduction of the first U.S. Bitcoin Futures product.

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