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The ongoing coronavirus pandemic has forced most people to go cashless, along with improving regulations in some countries, which has tremendously helped increase cryptocurrency adoption. In fact, an analyst predicts that increasing adoption and demand could drive Bitcoin’s (BTC) price to as high as $100,000 in just five years.
The prediction came from Mike McGlone, an analyst from Bloomberg. Basing his prediction on past BTC trends, such as when the token’s price took four years to rise from $1,000 to $10,000 in 2017, McGlone projected that Bitcoin could rise to $100,000 by 2025, Bitcoin.com reported.
“So, doubling that time frame for maturation could get the price toward $100,000 in about five more years,” Mike McGlone said in Bloomberg’s Crypto Outlook report for October. “Most demand and adoption measures indicate bitcoin is more likely to stay on its upward path.”
The Bloomberg analyst pointed out that the 30-day average of BTC addresses, a top metric for adoption, as at around $15,000. This means that at $10,600, the current price of the coin, Bitcoin is undervalued. Taking this into consideration, McGlone sees BTC’s price soaring above $14,000 by year-end.
Adoption can also be seen from the huge rise in Bitcoin addressed. From around 684,000 addresses at the start of 2020, the number of BTC addresses ballooned to 981,000, which represents a 43 percent rise in just nine months.
Aside from adoption, McGlone also cited other factors that could help fuel BTC’s rise in the next five years. These include its increasing hash rate, the limited supply of the token as well as the increasing interest by institutional investors.
Unlike fiat currency where governments can just print more money when needed, the total Bitcoin supply maxes out at 21 million coins by design. There is already more than 18.5 million BTC token in circulation, which means only 2.5 coins more are still to be mined. With a fixed supply, people have been predicting that Bitcoin’s price has nowhere to go but up once all the 21 million coins are mined.
Institutional investors have also shown increased interest in the cryptocurrency market. For instance, Grayscale recently added 17,000 Bitcoin (BTC) worth around $180 million to its assets under management in its Bitcoin Trust. The firm holds a total of 449,900 BTC tokens under management worth around $4.8 billion.
