Ethereum
VanEck Sets 3 Price Targets for Bitcoin: $130K, $2.9M, and $52.3M
Popular Bitcoin and Ethereum ETF issuer VanEck sets three ambitious price targets for BTC by 2050.
VanEck, one of the transmitters VanEck, the Bitcoin and Ether spot exchange-traded fund (ETF), has set three price targets for BTC. For the base target, VanEck projected that BTC could trade at $2,910,345 ($2.91 million) by 2050, leading to a market cap of $61 trillion.
Potential Factors That Could Push BTC to $2.91 Million
The investment manager speculated that massive demand for the asset class would propel Bitcoin’s potential rise to $2.91 million by 2050.
According to a report Published yesterday, VanEck predicted that Bitcoin could emerge as a major medium of exchange by 2050. In this hypothetical scenario, the firm predicts that Bitcoin will be used for 10% of global trade settlements as well as 5% of domestic trade worldwide.
If both scenarios come to fruition, the leading Bitcoin and Ether ETF issuer has predicted that central banks around the world could hold 2.5% of their reserve assets in BTC.
Taking into account three major factors, such as global economic growth, investor demand for BTC, and Bitcoin turnover, the leading investment manager projected that BTC could be valued at $2.91 million per coin by 2050, with a market cap totaling $61 trillion.
To reach the projected price of $2.91 million, Bitcoin would have to increase by 4,220%, or 42.2 times from its current price of $67,360.
Additionally, applying its existing framework used to value Ethereum’s Layer-2s, VanEck estimated that Bitcoin’s Layer-2 solutions could be worth $7.6 trillion, or about 12% of BTC’s valuation, by 2050.
VanEck’s Bearish and Bullish Scenarios Target BTC
It is worth noting that the $2.9 million price target for BTC is VanEck’s baseline projection. The investment manager has also set both bearish and bullish targets for BTC by 2050. Interestingly, VanEck has set a conservative price of $130,314 as the bearish target for BTC by 2050.
In a bullish scenario, the firm envisions Bitcoin reaching an ambitious target of $52,386,207 ($52.38 million).
The asset manager speculated in particular that Bitcoin’s potential rise toward these ambitious goals could be partly fueled by a decline in major global economies, including the United States, Japan and the European Union, relative to global economic activity.
Furthermore, the VanEck report suggests that demand for BTC will increase in the coming years as people lose confidence in major currencies due to uncontrolled deficit spending. The report also states that the declining use of the euro and Japanese yen for international settlements creates an opportunity for Bitcoin adoption in global exchanges.
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