Bloomberg explains in his Crypto Outlook for Q4 why BTC could reach $ 100,000 by 2025.
The October Crypto Outlook from Bloomberg focused on predicting the price of Bitcoin for the coming years and brings us some interesting facts.
Analysts made this prediction based on calculations where they compared over how long Bitcoin added another zero to the price and increased its value. This research found that if it is as it has been in the past, Bitcoin will maintain positive demand and the technology will work, in 2025 the $ 100,000 price tag could shine.
Analysts also call it the Bitcoin history of adding zeros, and with some maturation of Bitcoin, this trend could continue. The fact that Bitcoin’s history repeats itself is confirmed by 2017 and 2013. When BTC reached $ 10,000 in 2017, the cryptocurrency subsequently underwent a 70% correction, almost the same happened in 2013, BTC reached $ 1000 and then came down by 80%. Subsequently, BTC added another zero in four years and reached $ 10,000.
According to this theory, a double time frame from $ 1,000 to $ 10,000 would occur in 2025, and Bitcoin would add another zero this time to $ 10,000, so $ 100,000.
Bloomberg analysts also provided insight into price developments in the near future, according to which BTC could reach $ 14,000 this year. They refer mainly to the chart, which tracks the market cap of the Grayscale Bitcoin Trust (GBTC), which is close to the share of Bitcoin equivalent holdings of 500,000.
A year ago, this direct indicator of investor demand held less than half that amount. Inflows in GBTC, the largest exchange traded product, absorbed about 70% of new Bitcoin supply in 3Q, we calculate.
The document also states that the market cap below $ 200 billion at the start of 4Q is too small compared to other major asset classes, and this may be an impetus for institutional investors to increase demand. The creators of this outlook even think that central banks may also appear among large institutions, adding cryptocurrency as part of their shares, which could make Bitcoin a true version of digital gold.
Read also: Bitcoin markets are constantly facing various types of manipulation
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