Bitcoin (BTC) has been on a rollercoaster ride this year, reaching an all-time high of $73,830 in March before settling in the $66,000-$70,000 range. Now, billionaire investor Chamath Palihapitiya throws a fresh prediction into the mix – a staggering $500,000 per coin by October 2025.
Palihapitiya bases his prediction on historical price movements following Bitcoin halving events, which occur roughly every four years. These halvings reduce the number of new Bitcoins entering circulation, often leading to price hikes. Past halvings saw significant surges – 45x after the first, 28x after the second, and 8x after the third.
If Bitcoin follows a similar pattern after the latest halving, Palihapitiya argues, a $500,000 price tag by 2025 becomes a possibility. This bullish outlook aligns with the recent positive sentiment surrounding Bitcoin ETFs (Exchange Traded Funds) in major markets. Increased institutional investment, evident in inflows to BlackRock’s IBIT ETF, could further fuel price growth.
However, even Palihapitiya acknowledges potential hurdles. As Bitcoin’s market cap grows, achieving similar percentage gains might require exponentially more capital. A more conservative estimate, a 2x to 3x increase from the current price, would still translate to significant profits.
The recent price surge of over 1% could be partly attributed to the launch of Australia’s Monochrome Bitcoin ETF. This, along with the global momentum behind Bitcoin ETFs, underscores the growing institutional interest in cryptocurrency.
So, will Bitcoin(BTC) reach $500,000 by 2025? Only time will tell. However, Palihapitiya’s prediction, coupled with the positive ETF developments, suggests a potentially bullish long-term outlook for Bitcoin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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