Analysts from Statis Group — an initial coin offering (ICO) advisory firm — recently predicted that the price of a single bitcoin (BTC) will reach $96,000 in the next five years.
As reported by Forbes, this prediction was not simply made out of the blue. The firm’s head of research, Sherwin Dowlat, and research analyst Michael Hodapp based their prediction on Bitcoin’s fundamentals. They stated:
Currently, the vast majority of the total cryptoasset market capitalization is held in traditional store of value markets, with offshore deposits accounting for nearly 40% of the total.
The store of value use case is the most important for the analysts, who noted that market growth should come “primarily from increased store of value use case penetration.” Said penetration will increase at a dramatic rate once custody solutions for institutional and big-money investors truly come into play.
To put it simply, big money has yet to enter the market. Once it becomes — in institutional investors’ minds — safe to utilize cryptocurrencies as a store and effective transfer of value, the market capitalization of the market should ‘moon.’
As explained by Forbes, Dowlat and Hodapp “forecasted that the broader digital currency market would enjoy robust growth, reaching a total value of $3.6 trillion in 2028, roughly 1,700% higher than its current value of approximately $200 billion on CoinMarketCap.”
Not everyone agrees with this bullish Bitcoin price prediction, of course.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, told the American family-controlled business magazine:
Bitcoin’s price can be anywhere in 5 years, from $10,000 to $100,000. An exact prediction is hard to provide because there are numerous fundamentals that are likely to change between now and 2023. Digital currencies and assets are the future of transactions and value storage, and Bitcoin is leading this revolution. But this doesn’t make it easy to guarantee a specific price tag five years down the road.
Yazan Barghuthi, CEO of Jibrel Network, is also highly skeptical of the near-$100,000 future price tag, telling Forbes:
I do believe BTC has a compelling use-case as a store of value, particularly in countries experiencing hyperinflation (Iran, Turkey, Venezuela), but to assume it will capture sizable market share from Private Banks in markets such as the US, Switzerland, Singapore, Germany, Netherlands, etc. over the next 5 years, is extremely optimistic.
Healthy skepticism certainly isn’t a problematic viewpoint when it comes to Bitcoin, and even less so when we’re talking about altcoins. Many of the latter won’t even exist in the next five years, and throwing around high or low figures in regards to bitcoin is somewhat akin to fortune telling.
Global Money Supply
On the other hand, Blockforce Capital CEO Eric Ervin believes the analysts’ valuation is definitely not outside of the realm of possibility, based solely on Bitcoin’s current share of the global money supply. “Bitcoin’s current 112 billion dollar market cap represents just 0.1% of the entire global money supply which is currently valued at approximately 90.4 trillion dollars,” he told Forbes.
Only a Bull Run Away
Meanwhile, Marius Rupsys, a digital currency investor, claims that target should be reached in the next bull run, telling Forbes:
To reach the price of $96,000 seems achievable given past bull markets. For example, bitcoin went from less than $1,000 per coin to more than $16,000 per coin in 2017 alone. Which is more than 16x increase in 1 year. Bitcoin is trading at $6,450 today, meaning it needs to increase 15 times in the next 5 years to reach $96,000. Assuming bitcoin survives this long and volatility keeps similar levels, it should be quite realistic to do it during the next bitcoin bull run.
However, a lot of people did get burned on the last bitcoin bull run — to the point where the FOMO (fear of missing out) created a massive bubble that burst and arguably set the industry back. Whether or not that same level of retail investment hype will ever return remains to be seen.
What do you think Bitcoin’s price will be in the next five years? Let us know your predictions in the comments below!
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