Is Bitcoin’s Recent Rally Just A Beginning?

The BTC/USD pair has risen past $72,000, setting a new record, but this is a long way from the top that some analysts of the biggest cryptocurrency in the world had predicted. By year’s end, Standard Chartered believes bitcoin will hit $100,000, while research company Fundstrat has set a target price between $116,000 and $137,000.

One estimate puts it at $170,000 by April 2025. According to those on Wall Street, the lack of intrinsic worth of bitcoin makes it extremely difficult to predict its future price, and the majority of large companies with extensive research departments are now avoiding establishing targets.

Other financial companies are attempting to put the price far higher than it is now, though. Certain companies that make these forecasts also offer goods that give investors access to the digital asset. VanEck is one of the money managers that the Securities and Exchange Commission approved in January to introduce a new exchange-traded fund (ETF) for spot bitcoin. VanEck recently abandoned its $80,000 goal for 2024 as the price of bitcoin started rising to all-time highs in the previous week.

Ark Invest, a different money management that was granted permission to introduce a bitcoin ETF, has projected that the price of each coin will exceed $1.3 million over the course of the next ten years. Yassine Elmandjra, director of digital assets at Ark, recognised that such an ambitious estimate would seem “absurd,” but he said that bitcoin’s worth will increase as its numerous applications contribute to the total amount of the digital asset’s market value.

The key to determining how high the price could go is demand. Wall Street strategists frequently use a company’s earnings per share multiplied by the price that investors are ready to pay for the shares to estimate future prices for that stock. In this instance, determining how high the price could go depends on the desire to hold an unseasonable, strictly scarce, digitally native asset.

As Bitcoin surpasses yet another record high, Coinbase is reporting record-high trade volumes. As institutions, individuals and organizations keep purchasing Bitcoin, trading volumes have surged to an all-time high. The 24-hour spot BTC trading volumes on Coinbase, one of the biggest cryptocurrency exchanges, have surpassed $1.3 billion. Analysts wonder now what would all this entail for the cryptocurrency market, given the recent inflow of investment funds and the fervent trading activity.