Bitcoin has been holding steady at $100,000 over the past days, which already feels like a massive win. But can it continue the momentum? Some analysts believe it’s possible for Bitcoin to hit $1 million, and they have some interesting reasons to back that up.
Is Bitcoin the New Gold?
You might have heard people call Bitcoin “digital gold.” It’s not just a catchy phrase—analysts and investors believe Bitcoin could replace gold as the favorite way to store value during uncertain times. For centuries, gold has been where people turn when they worry about the economy falling apart.
In 2004, gold’s total market value was about $1 trillion. Then gold ETFs (a kind of stock tied to gold prices) became popular, and gold’s value shot up to an enormous $17.5 trillion in current times.
Right now, Bitcoin is worth about $2 trillion. If investors start moving their money from gold into Bitcoin, it could grow by as much as 750%. That’s the kind of growth that could push Bitcoin to $1 million per coin. Ki Young Ju, the CEO of CryptoQuant, even says, “Bitcoin reaching $1M isn’t about if—it’s about when.”
Even the U.S. Treasury Department seems to agree, recently referring to Bitcoin as “digital gold” in a report. “[The] primary use for Bitcoin seems to be a store of value aka ‘digital gold’ in a decentralized finance (DeFi) world,” it reads.
If we are discussing a $1 million price for Bitcoin, then Michael Saylor’s prediction for a $13 million (or even $49 million) Bitcoin price by 2045 is definitely worth reading about.
By the time #Bitcoin hits $1M, its market cap will surpass gold.
In 2004, before gold ETFs were approved, gold’s market cap was $1T. Today, it’s $17.8T. If we assume gold’s intrinsic value as a precious metal is $1T, then around $16.8T represents its demand as a safe-haven… pic.twitter.com/rn68iMi8kB
— Ki Young Ju (@ki_young_ju) December 6, 2024
U.S. Dollar Declines, Good for Bitcoin
Jack Mallers, who runs the Strike app, thinks Bitcoin’s price could land anywhere between $250,000 and $1 million by 2025. His reasoning? The weakening of the US dollar.
The U.S. government keeps printing more dollars to cover its debts, which lowers the dollar’s value. This process, called monetary debasement, makes people nervous about keeping their money in cash. When savings lose buying power, people start searching for better options—and Bitcoin stands out as one of them.
What makes Bitcoin so special is that there will only ever be 21 million coins. That limited supply means the price tends to go up when demand grows. Mallers sees Bitcoin as the best savings technology ever invented.
Anywhere Between $100,000 and $250,000 Soon?
Pseudonymous analyst PlanB believes that after surpassing the $100k mark earlier in the week, Bitcoin is now setting up for a boom. In the coming year a price of $250,000 is within range of possibility according to the analysts, based on his Bitcoin stock-to-flow model. He has not been shy of making a year-end price prediction either for Bitcoin, of $140,000 per coin.
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