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Since November 5, when President-elect Donald Trump secured another term in office, Bitcoin has experienced a significant uptrend. The cryptocurrency reached a new all-time high of $93,300, sparking interest and speculation about its future trajectory. Currently, Bitcoin is trading within a narrow range between $89,000 and $92,000, setting the stage for a potential move toward the $100,000 milestone. This development raises an intriguing question: could Bitcoin’s price reach $1 million per coin over the next decade?
A Long-Term Vision for Investors
Market expert VirtualBacon has conducted an extensive analysis of Bitcoin’s potential growth, examining the numbers, trends, and catalysts that could propel the cryptocurrency to experience a surge of nearly 1,000% from its current price levels. According to the expert, within the current market cycle, Bitcoin could reach $200,000 in the next one to two years. However, while this milestone is significant, VirtualBacon notes that altcoins may offer higher returns at a greater risk, often plummeting by 80% to 90% during bear markets.
In contrast to the volatile nature of altcoins, Bitcoin stands out as a safer long-term investment, even amidst increasing regulatory scrutiny affecting alternative cryptocurrencies. VirtualBacon argues that Bitcoin’s potential extends beyond the next few years, envisioning a growth trajectory that spans a decade or more.
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To comprehend why Bitcoin’s price could potentially reach $1 million, VirtualBacon emphasizes its fundamental utility as a store of value. With a fixed supply of 21 million coins, global accessibility, and resistance to censorship and manipulation, Bitcoin presents a compelling alternative to traditional financial assets. The expert suggests that Bitcoin could be recognized as the digital gold of the 21st century. Achieving a market capitalization on par with gold’s estimated $13 trillion is not just a theoretical scenario but a logical outcome.
Key drivers for this potential growth include increasing participation from asset managers, corporate treasuries, central banks, and wealthy individuals. Recent data highlights record inflows into Bitcoin ETFs, with $1 billion invested last week, demonstrating growing institutional confidence. Additionally, discussions among corporations, such as Microsoft considering Bitcoin reserves, further enhance its strategic value. Wealthy individuals are also beginning to adopt Bitcoin as a standard portfolio allocation, with even a modest 1% investment becoming commonplace among billionaires.
What Does Bitcoin Need to Reach $1 Million?
For Bitcoin to achieve the $1 million mark, two critical factors must be considered: global wealth growth and portfolio allocation. VirtualBacon notes that in 2022, total global wealth was estimated at $454 trillion, with projections suggesting it could grow to $750 trillion by 2034. Currently, gold holds approximately 3.9% of global wealth, while Bitcoin accounts for a mere 0.35%. If Bitcoin’s allocation in global portfolios were to rise to just 3%, significantly below gold’s share, its market cap could soar to $20 trillion, pushing the price to $1 million per coin.
Historically, gold’s market cap experienced significant growth following the launch of exchange-traded funds in 2004, with its portfolio allocation increasing from 1.67% to 4.74% over the next decade.
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If Bitcoin follows a similar trajectory, its allocation could rise from 0.35% to 1.05% or more, translating to a market cap of approximately $7.92 trillion, equating to about $395,000 per Bitcoin. Therefore, reaching $1 million doesn’t require Bitcoin to surpass gold; it must capture about 57% of gold’s projected market cap by 2034. With gold representing 4.7% of global portfolios compared to Bitcoin’s 0.35%, a modest increase in Bitcoin’s share of global wealth to 3%—just 60% of gold’s allocation—could “easily” result in a $20 trillion market cap and a $1 million price point.
At the time of writing, Bitcoin is trading at $92,240, up 7% weekly. While this price movement indicates a robust growth pattern, the potential for Bitcoin to reach $1 million remains an exciting prospect for investors and market observers alike.
