$119 billion VanEck predicts Bitcoin to hit $3m and become a global reserve asset
$119 billion VanEck predicts Bitcoin to hit $3m and become a global reserve asset 
Cryptocurrency Oct 28, 2024 Share
Investment manager VanEck, one of the bullish institutional investors in Bitcoin (BTC), believes the maiden cryptocurrency is on track to surpass the $1 million valuation in the coming years.
Specifically, the firm’s Head of Digital Assets Research, Matthew Sigel, projects that VanEck’s model will have Bitcoin trading at $3 million by 2025 when the digital currency will transition into a global reserve asset held by central banks, he said during an interview with CNBC’s Squawk Box on October 28.
According to Sigel, this projection hinges on Bitcoin achieving a modest 2% allocation within global reserves. He emphasized that this scenario might sound extreme but is based on a realistic 16% compound annual growth rate over a few decades.
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“We have a model that assumes that by 2050, this is very long term, Bitcoin becomes a reserve asset used in global trade and held by global central banks at a very modest 2% weight. In that model, we arrive at a $3 million price target for Bitcoin.,” he said.
Bitcoin hitting $61 trillion market cap
This sentiment can be considered as the $119 billion asset management firm doubling down on its bold Bitcoin prediction. Initially, VanEck stated that the asset could hit $61 trillion in market capitalization or a valuation of around $2.9 million per coin by 2050.
Indeed, if this valuation is attained, Bitcoin will become one of the most valuable assets in the world, surpassing gold, provided these competing assets experience minimal growth by 2050.
To attain this price level, Bitcoin will need to be backed by clear regulations, such as government identification as a currency. In this context, the November 5 U.S. presidential election is crucial for Bitcoin.
A Donald Trump win is considered a major boost for Bitcoin. The Republican frontrunner has expressed support for the digital assets space and aims to make the United States a hub of innovation in this sector.
To this end, Sigel noted that Bitcoin is facing a bullish setup ahead of the polls. He pointed to the patterns observed during the 2020 elections, where Bitcoin experienced low volatility before the winner’s announcement.
Following this, a surge in buying activity resulted in a volatile rally, with new buyers entering the space.
The impact of the upcoming polls has also led Bernstein analysts, including Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, to forecast that if Trump wins, Bitcoin could soar to a new all-time high of $80,000 to $90,000.
Standard Chartered also projected that Bitcoin would hit $125,000 by the end of 2024 if Trump wins and $75,000 if Kamala Harris wins, representing record highs.
Bitcoin price analysis
As of press time, Bitcoin was trading at $68,690, gaining 1.45% in the last 24 hours. On the weekly chart, BTC is up 2.25%.
Bitcoin seven-day price chart. Source: Finbold
At its current valuation, Bitcoin appears bullish for both the short and long term, as the price remains above the 50-day and 200-day simple moving averages.
Featured image:
T. Schneider, Stuttgart, Germany – 03-25-2023 Digital Image, Shutterstock.
