Bitcoin pioneer Adam Back believes that Bitcoin could increase its market capitalisation by 400% in less than two years.
According to Blockstream CEO Adam Back, who presented a new upward outlook on BTC pricing on October 5, he said that the fact that Bitcoin (BTC) will reach a market capitalisation of $1 trillion by 2025 is „conservative“, as those levels should be reached in less than two years.
Back responded to a report by Yassine Elmandjra, a crypto analyst at investment adviser ARK, who in September predicted a Bitcoin market capitalization of $1-5 trillion by 2030 at the latest.
ARK is well known for its enthusiastic price forecasts for Tesla shares, which experienced an almost unbelievable increase in 2020.
„Conservative. I would say that #bitcoin probably sees a $1 trillion market capitalization in 2 years, probably sooner. $1 trillion is approximately BTC $50k“
As of October 2020, Bitcoin’s market capitalization is just over $198 billion. For Back’s forecast to come true, the market would need to see a 400% increase by 2022.
For reference, in early October 2018, two years ago, the figure was $114 billion. The BTC/USD was trading at $6,600, two months before its bear market bottomed at $3,100.
Analysts betting on a breakout
Other responses to Wealth Matrix included data from the chain resource ecoinometrics, which highlighted a Bitcoin market capitalisation of $2 billion as equal to that of Apple.
The BTC/USD pair would trade at $100,000 under such circumstances, while to match gold, the pair would need to reach $500,000.
As reported by Cointelegraph, Bitcoin price activity is currently much more moderate, and analysts expect more side actions to characterise the rest of the year.
At the same time, anticipation is building on BTC/USD abandoning its correlation with traditional macro assets and increasing in line with historical behaviour, specifically focused on the predictions of stock-to-flow price forecasting models.
The Stock-to-flow model requires an average price of $288,000 during the current halving cycle, which began in May and will last until 2024.