One of the most influential voices in the crypto space has predicted that Bitcoin could surge by more than 600% in the next few years, thanks to a key catalyst. Following the example of El Salvador, the catalyst is the adoption of Bitcoin as a legal tender by more and more countries.
This would increase the demand and liquidity of bitcoin and reduce its volatility and regulatory risks. The crypto expert, who goes by the name of PlanB on Twitter, is the creator of the stock-to-flow model, which uses the scarcity of Bitcoin to forecast its price. According to his model, bitcoin could reach $1 million by 2025 if more countries adopt it as a legal tender.
In a blog post, Butterfill shared about a potential price impact on the crypto market if the Securities and Exchange Commission(SEC) approves a spot Bitcoin ETF.
“One could assume that perhaps 10% invest in a spot Bitcoin ETF with an average allocation of 1%, equating to $14.4 billion of inflows in the first year. There does seem to be a relationship between inflows as a percentage of AUM (assets under management) and change in [BTC] price,” he said.
PlanB has a track record of accurate predictions, as the historical performance of Bitcoin has validated his model. He also pointed out that the current market cycle of Bitcoin is not over yet and that the price could still reach new highs before the end of the year. He said he expects Bitcoin to break above $100,000 soon and possibly reach $300,000 or higher by December. PlanB is not the only one who believes that Bitcoin adoption will drive its price higher.
Michael Saylor, the CEO of MicroStrategy, a company that holds over 100,000 bitcoins in its treasury, said that he expects hundreds of millions of people to use Bitcoin as a store of value in the future. He said that Bitcoin is superior to gold and fiat currencies as it is more scarce, durable, portable, divisible, verifiable, and programmable.
He also said that Bitcoin is a hedge against inflation and currency devaluation, which are becoming more prevalent worldwide. Bitcoin is currently trading at around $57,000, up by over 90% since the start of the year. It has a market capitalization of over $1 trillion, making it the sixth-largest asset in the world by market value.