Bitcoin is trading just above $81,000 as markets await its next move. Matthew Siegel, head of digital asset research at VanEck, reiterated his bullish outlook, predicting the cryptocurrency could reach $1,000,000 by 2031.
Siegel compared Bitcoin's staying power to the video game industry, arguing that once adopted, it is rarely abandoned. He noted a "mega trend" as the first central bank has started buying Bitcoin for its reserves, though he acknowledged the path will be "very volatile."
Supporting current momentum, Siegel pointed out that Bitcoin's correlation with the Nasdaq has risen to a five-year high, making it trade more like a high-beta tech asset. He also highlighted the absence of froth in derivatives markets, suggesting the rally is driven by short covering rather than speculation.
VanEck's longer-term projection sees Bitcoin potentially reaching $2.9 million by 2050, based on its role as a medium of exchange and central bank reserve asset. Under a more aggressive scenario where Bitcoin captures 20% of international trade and 10% of GDP, the model implies a value of $53.4 million per coin.