In the next decade, the price of Bitcoin could reach $1 million amid the growth of the digital economy. The forecast came in an interview with TD Ameritrade Network from Ark Invest analyst Yassine Elmandjra.
As the digital economy starts to become the focal point of the entire economy, it’s not unreasonable to think #bitcoin could exceed $1 million in the next decade, @yassineARK tells @NPetallides:
— TD Ameritrade Network (@TDANetwork) April 13, 2023
The expert highlighted Bitcoin’s impressive performance in the previous decade. In his view, this makes digital gold an attractive component of investment portfolios.
According to the analyst, a sensible share of Bitcoin for institutional investors should range from 2.5% to 6.5%, depending on overall portfolio returns and risk tolerance. Such a distribution could lift the asset to the stated price.
According to Elmandjra, the notion that it’s now too late to invest in the first cryptocurrency is misguided. He pointed to digital gold’s demonstrated resilience in periods of market volatility and its appeal as a store of value.
The analyst acknowledged that a 30-fold price rise forecast may sound extraordinary, but it is “quite reasonable” when looking at the history of cryptocurrency development.
“If you look at where Bitcoin started (a digital collectible asset without market value), I do not consider it unreasonable that over the next decade the digital economy will be the core of all economic activity,” said Elmandjra.
On April 11, the price of the cryptocurrency breached the $30,000 level. At the time of writing the asset was trading around $30,725 (CoinGecko).
According to a survey, major players in the industry remain bullish and forecast a rise to $100,000. Bank of America analysts also forecast the continuation of the rally in digital gold.
In January, Ark Invest experts presented calculations suggesting that Bitcoin could rise to $1.36 million by 2030.
Economist and author of The Bitcoin Standard, Saifedean Ammous did not endorse the forecast that Bitcoin would reach $1 million in the near term.