Greetings, forward-thinking investors and enterprising entrepreneurs! Pull up a chair and buckle in, because we’re about to take a thrilling journey into the world of Bitcoin and its potential trajectory to a staggering $100,000 valuation by 2025.
To kickstart this exploration, we’re drawing insights from the experiences and predictions of Joe Kelly, the CEO, and co-founder of Unchained, a heavyweight in the crypto industry managing a hefty $2 billion in assets.
Kelly throws light on a distinctive event in Bitcoin’s lifecycle: the “halving” – a periodic event where miners’ rewards are halved, creating an effect of scarcity. Cited from the original whitepaper of Bitcoin’s mysterious creator, Satoshi Nakamoto, this event is a crucial part of the Bitcoin journey. According to Kelly, the event tends to create a massive surge in the token’s value leading up to and following the halving, set next for April 2024.
Painting a clearer picture, each of the past three halvings has sparked new all-time highs within a year. Projecting a modest outlook, Kelly suggests that “if Bitcoin lingers around $30K until the halving, a 250% post-halving increase—which, by the way, is modest relative to previous surges—would catapult Bitcoin to a cool $105K.”
On reflection, the price of Bitcoin soared by 8,069%, 284%, and 559% a year after the 2012, 2016, and 2020 halvings, respectively. Not to mention, the lead-up to these events witnessed impressive rallies as well.
Yet, some forecasts take an even bolder stance. According to a recent note from Fundstrat to its clientele, Bitcoin could reach an astounding $180,000 before the next halving. This projection is based on the momentum spurred by a potential crypto ETF from BlackRock. Fundstrat’s strategists postulate, “A Bitcoin ETF launch could bring daily demand to $125 million, whereas daily supply is only $25 million. This mismatch could drive the price up to an equilibrium level of $140,000 to $180,000 before the April 2024 halving.”
Adding further intrigue to Bitcoin’s narrative is its total supply cap of 21 million coins. Each halving inches us closer to this cap, adding an element of scarcity and allure. This event occurs every 210,000 blocks mined or roughly every four years, with the last one taking place on May 11, 2020. The final one is projected to be in 2140, barring any unexpected twists and turns.
After a rollercoaster of a ride, Bitcoin has surged 77% in 2023, bouncing back from last year’s 65% downturn. This surge coincides with historic interest rate hikes by the Federal Reserve and a series of bank failures that started with Silicon Valley Bank. Kelly suggests any forthcoming easing in monetary policy could further fuel Bitcoin’s ascent.
However, it’s worth noting that nothing is set in stone. Although past trends are optimistic, there’s no foolproof guarantee the next Bitcoin halving will reach similar heights. Macro-economic factors such as a rising interest rate environment could deter investors, and it’s essential to remember that mining rewards aren’t directly linked to market demand.
As we navigate these unpredictable waters, it’s crucial to stay informed and savvy. Here’s to the thrill of the ride, and may the odds be ever in your favor!