Bitcoin’s price has been fluctuating wildly in the last week, leaving the market puzzled with its unpredictability. On March 14, 2024, bulls were in a celebratory mood as the top cryptocurrency reached an all-time high of $73,750.07. Nevertheless, the bears were successful in overpowering the bulls and caused it to drop to $61,000 at one stage before stabilizing at $64,581, marking a 12.55% decline from the highest point. However, BTC has still shown strong results in the last month and since the beginning of the year, with increases in value of 26% and 133% respectively. Experts and analysts are projecting that the price of Bitcoin will reach $3.8 Million in 2030 due to its performance. Let’s discover the reason behind this.

Market Performance of Bitcoin

Today, Bitcoin price is $64,714.38, with a trading range of $62,355 to $64,834.24. A decline in trading volume of 11.21% resulted in it reaching $36.54 billion. This shows a decrease in the level of buying and selling transactions. Possibly, traders are less interested or unsure, leading to reduced volatility in the end. With a market capitalization of $1.27 trillion and a circulating supply of 19,661,956 BTC, it continues to hold the top spot in the market, according to CoinMarketCap.

Reasons Bitcoin Price Will Hit $3.8 Million in 2030

Distinguished investor Cathie Wood of Ark Invest predicted an impressive price goal for Bitcoin, indicating that it could hit $3.8 million by 2030. Wood shared this forecast during the Bitcoin Investor Day event in New York on Friday. In her earlier forecast in January, she had proposed that Bitcoin might hit $1.5 million by 2030. Doubling the forecasted price  the ARK Invest CEO cited here reasons.

1. Institutional investment

Wood believes that if institutional investors allocate just over 5% of their portfolios to Bitcoin, her projection would reach $3.8 million. The SEC recently provided approval for spot Bitcoin ETFs, including for Wood’s firm and others like BlackRock and Fidelity. This has led to increased demand for Bitcoin and record flows into US ETFs. Wood’s forecast aligns with other experts’ bullish outlook on Bitcoin, with some predicting it could reach close to $100,000 by 2025. 

Despite recent volatility, Bitcoin has shown resilience and experienced a surge after the Federal Reserve’s decision to keep interest rates steady. Wood’s projection also reflects the growing institutional interest in Bitcoin and the broader trend towards digital assets and blockchain technology. ARK Invest predicts the total market value of digital assets could reach $220 trillion by 2030.

2. Bitcoin Halving

The upcoming Bitcoin halving event in April is expected to further drive demand due to a supply shock, according to Woods. This is echoed by industry experts who are also predicting that the upcoming bitcoin halving event in April could result in a supply shock, potentially intensifying the current rally driven by demand.

At the Reflexivity Research conference, Wood stated that she anticipates the next halving to result in a comparable impact to past occurrences. During the year after the three halvings in 2012, 2016, and 2020, the value of bitcoin surged by 8,069%, 284%, and 559% in that order.

Wood insisted that they believe bitcoin has a long way to go. The crypto market is  just starting to establish a financial system specifically designed for the internet and eliminating all middlemen.

Way Forward

Analysts report a recent drop in the value of Bitcoin, dipping below the $70K mark. They assert that investors could gain from examining whether this change has resulted in a drop in trading activity in the futures market.

A CryptoQuant chart displays Bitcoin funding rates, indicating whether buyers or sellers are executing their orders more aggressively. High funding rates often trigger a lengthy liquidation cascade. Consequently, while it is necessary to have positive funding rates, excessively high values can be concerning.

The chart indicates a recent price drop. This decrease in funding rates indicates a downturn in the futures market. This may suggest favorable progress, by reducing further sales and could lead to a lasting increase in  Bitcoin price.

The post Bitcoin Price: Why BTC Price Will Hit $3.8 million in 2030 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am