- Bitcoin records a new yearly high.
- Positive sentiment is flooding crypto markets.
- Lofty price predictions are doing the rounds once more.
With Bitcoin on track to close six consecutive monthly green candles, the bear market has been well and truly put to rest. This resurgence has culminated in the leading cryptocurrency topping $57,400 in the early hours (UTC) of February 27, forming a 117-week high and sending market sentiment firmly into extreme greed territory.
As crypto markets bask in the flood of positive sentiment, thoughts turn to price predictions, to which there is no shortage of lofty calls, particularly at this early stage of the cycle ahead of the halving.
Bitcoin to $1.5 Million?
Leading the lofty Bitcoin calls is Cathie Wood, the CEO of Ark Invest, who planted her flag at between $600,000 and $1.5 million by the end of the decade. Wood cited rising hash rates, long-term holders continuing to hold, and the BTC ETFs as factors in this sky-high prediction.
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Interestingly, commentators were generally in disbelief, with one stating that BTC cannot be used to buy milk and eggs, while another panned Woodโs call on the basis that a $1.5 million BTC would equate to a โ$34 TRILLIONโ market cap, and โwould be approximately the value of all currency in circulation in the world.โ
It was noted that even if all the Bitcoin supply were in circulation, a $1.5 million price per coin would amount to a $31.5 trillion market cap, while Market Watch estimated the global money supply at $90.4 trillion, which includes โnarrow money,โ or the most liquid forms such as cash and checking deposits, at $36.8 trillion.
Although Woodโs prediction may seem far-fetched under the current circumstances, she isnโt the only one predicting a seven-figure Bitcoin.
Economic Collapse
Former BitMEX CEO Arthur Hayes joined Cathie Wood in calling for a seven-figure Bitcoin. Hayes believes the Fed will cut interest rates in 2024, which would see liquidity flooding markets to send asset prices much higher. In Bitcoinโs case, liquidity flows will equate to a $1 million price, claimed Hayes.
Interest rate cuts are a central bank monetary policy tool to incentivize economic growth amidst stagnation or crisis. By cutting rates, central banks aim to increase lending activity and liquidity flow during periods of contraction. However, such intervention tends to arrive when markets face mounting adversity.
In line with anticipated economic chaos, Bitcoin bull Max Keiser foresees a โ1987-style crash coming,โ with BTC being โthe ultimate safe haven,โ capital flows will push the leading cryptocurrency to $500,000.ย
Ignoring macro and fundamental factors, renowned trader Peter Brandt used technical analysis to derive a $200,000 Bitcoin price at the bull market top, which he believes will come around August to September 2025.
On the Flipside
- Price predictions have a poor track record of hitting the mark.
- Google searches for Bitcoin remain flat, indicating continued retail disinterest.
- The next FOMC meeting is scheduled for March 20, with the current odds 99.5% in favor of the Fed, leaving interest rates untouched at between 5.25%-5.5%.
Why This Matters
Wild Bitcoin price predictions may stoke exuberance among loyal cryptocurrency advocates. However, it’s worth considering whether such lofty heights for Bitcoin would come in tandem with wider economic instability, which is a scenario few would want to go through, given the choice.
Read about Bitcoinโs continued price appreciation here:
Bitcoin (BTC) Tops $55,000 for the First Time Since 2021
Find out more on VeChainโs revival ahead of Sunny Luโs big reveal here:
VeChain Comeback Hopes Revive After 8% Price Jump
