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Bitcoin’s (BTC) price tumbled recently after a series of developments, such as Tesla’s decision to stop BTC payments and China’s call of a crackdown on crypto mining and transactions, shook the digital assets market. However, a crypto analyst is undeterred by the volatility and maintains his long-term bullish stance on the world’s largest cryptocurrency.
Parallex Digital founder and CEO Robert Breedlove is not too concerned with the volatility of Bitcoin, which saw the crypto dive to around $30,000 from last month’s all-time high above $64,000. In fact, he remains bullish and believes that not only will BTC set a new all-time above $300,000 later this year, but the crypto is also on track to rise to as high as $12.5 million in a decade, according to Kitco News.
He based his BTC price projection on the assumption that the U.S.’s money supply will grow exponentially. “The expansion of the money supply is governed by a law, it's called the law of accelerating issuance of depreciation, so the more money you print, the more money you have to print just to keep the system going,” Breedlove told Kitco News editor-in-chief Michelle Makori in an interview.
According to the crypto analyst, the M2 money supply will likely double in four years, and double again after that. With this exponential rate, the U.S. money supply will balloon to around 40 percent of the world’s total in 10 years.
“During that time, I expect Bitcoin [to be] the ultimate, irrepressible non-counterparty insurance policy against central banks to appreciate in tandem, so I think its purchasing power will increase to $1 million in 2021 purchasing power [terms] but by that time, due to the expansion of the money supply…Bitcoin will actually be nominally valued at $12.5 million,” Breedlove explained.
He also stated that Bitcoin could hit a new all-time high later this year. “Historically, roughly 510 days after the halving event, the market tends to put in a new all-time high price,” Breedlove said. “That would put us around mid-October.”
The new price prediction is higher than his previous estimate as he factored in the effects of the government’s money printing activities on inflation. “I had a model [in which] we called the next Bitcoin peak at $244,000. I modified that model after COVID because I think that the inflationary pressures on the U.S. dollar are going to become especially pronounced 18 months after the printing began, which so happens to fall in line with the next Bitcoin price peak,” he explained. “So, I think we can break $300,000 in this market cycle.”
