Bitcoin (BTC) reached a two-month high of $66,500 last Friday, fueled by fresh market liquidity and renewed investor confidence in risk assets following the US Federal Reserve’s (Fed) interest rate cut on September 18.
However, one analyst predicts that the cryptocurrency’s market capitalization and price could grow significantly in the coming years if the current bullish trends continue.
Bitcoin Price Could Hit $550,000 Amid Market Changes
In a recent social media post, crypto analyst Doctor Profit outlined a bullish outlook for Bitcoin, predicting that its market capitalization and price could significantly increase if past growth patterns hold over the coming years.
Doctor Profit argues that the largest cryptocurrency on the market could reach a market capitalization of $8 trillion, which he estimates would be equivalent to a price of around $550,000 by 2030.
Doctor Profit’s analysis compares Bitcoin’s potential to gold, which currently has a market cap of around $16 trillion. He bases his calculations on several factors, including new liquidity inflows and movements in thegold market.
Specifically, the analyst estimates that the market capitalization of gold could rise to between $13 trillion and $19 trillion, strengthening Bitcoin’s position as a viable alternative asset.
His analysis also includes considerations of inflation and the substantial amount of Bitcoin that is effectively lost. With estimates suggesting that about 15 million BTC are still in circulation and around 6 million BTC lost forever, the scarcity of Bitcoin could drive its value higher.
In addition, Doctor Profit expects the M2 money supply – the Fed’s estimate of the total money supply, including the cash people hold in their hands – to increase from $21 trillion to $33 trillion by 2028, which should further boost BTC’s priceover that period.
Analyst Expects Significant Corrections Ahead For BTC
The analyst also discussed technical analysis, suggesting that while Bitcoin might face periodic corrections—a healthy occurrence in any upward trend—these should not be mistaken for bear markets.
Doctor Profit expects 3-4 significant corrections of 40-50% as Bitcoin approaches milestones such as $120,000, $160,000, and $220,000, notably surpassing BTC’s current record high of $73,700 reached in March this year. However, he emphasizes that these correctionsrepresent opportunities rather than risks for long-term investors.
Doctor Profit also clarified that a long-term investment strategy can include active trading and holding. The analyst believes that corrections should not deter investors but rather be viewed as chances to buy at lower prices.
At the time of writing, the largest cryptocurrency on the market is trading at $63,590, recording losses of 3.4% in the 24-hour.
Featured image from DALL-E, chart from TradingView.com