A recent study by Byte Tree suggests that it’s indeed very possible for bitcoin’s (BTC) market capitalization to reach $1 trillion by 2025 spurred on by more bitcoin wealth creation as more institutional investors get on board. This week has notably been good for bitcoin price. Bitcoin market appears to be reacting to positive news related to the increment of institutional involvement, case in point, news of Bakkt launching its bitcoin futures and VanEck and SolidX rolling out their bitcoin ETF-like product for institutions.
Hence, it’s not surprising this new study is confident that BTC will hit the $1 trillion market cap in only 6 years’ time.
It’s worth noting that just two months ago, Willy Woo, crypto analyst, and partner at Adaptive Capital also predicted BTC’s market cap hitting $1 trillion by 2025.
$1 Trillion Market Cap By 2025 – Slow But Sure
Byte Tree, a real-time cryptocurrency and blockchain analysis resource, predicted that bitcoin will attain new feats, but “at a more moderate pace”. This happened after bitcoin soared to its YTD high around $13,750. A brutal sell-off then followed which saw bitcoin price drop below $9,400. However, the bullish news of Bakkt pushed the price back above $10k, even though it failed to break the $11,000 level, once again.
This study notes that $20,000 bitcoin will come to play in early 2022. Meanwhile, we can expect the price to hover around the $10k area up to the end of 2020.
The research reads in part:
“Growth rates can go on for long periods of time but will inevitably slowdown as they mature. The implications for this trendline imply $10,000 bitcoin will remain a theme until late 2020, rising to $20,000 by Feb 2022 and $40,000 by May 2023.”
Byte Tree goes ahead to say that in the future, there will be more wealth created owing to greater adoption – more than before, therefore pushing the market capitalization of bitcoin to $1 trillion:
“Recall that if (nearly) 18 million coins quadruple in price, more than half a trillion dollars of wealth will be created. That’s more than possible and the network could touch a trillion dollars by 2025. Considerably more wealth creation lies ahead, than has occurred in the past. And as the network matures and enjoys greater adoption, the conversation will change. Institutions will become more open to the idea.”
BTC In The Coming Years: Steady Growth Year After Year
As per the Byte Tree, bitcoin investors’ returns stood at a rate of 212% per annum before slumping last November. This is however no cause for alarm as it was impossible for the rate to continue at such a very high pace for a long time.
Nevertheless, this downswing is not an indication of bearishness for bitcoin’s price. In fact, a similar trend is seen in other assets like tech stocks which keep soaring year after year; and this is what bitcoin will be all about in the coming years:
“You can’t reasonably expect steep trendline to continue indefinitely, but you can expect credible assets to keep on moving higher year after year. If you doubt that, then just look at the leading tech stocks which seemingly go from strength to strength. They grow because the internet is an established mega trend; something that bitcoin will enjoy for years to come,” the study concluded.
The prognostication of bitcoin attaining $40k by 2023 sounds like a less ambitious but attainable target compared to John McAfee’s $1,000,000 bitcoin price by 2020 prediction, keeping in mind that bitcoin is currently exchanging hands at $10,428.47 with 3.37% losses on the day.
In the near-term, however, the commencement of trading on Bakkt platform on Sept 23 with physically-settled bitcoin futures- first of its kind- and any positive news about VanEck and SolidX’s Bitcoin ETF ought to have a bullish effect on the price of bitcoin and the aggregate crypto market at large.