The analyst, known as Doctor Profit, shared his bullish outlook on social media. He forecasts Bitcoin's market cap could hit $8 trillion. This would equate to a price of approximately $550,000 by 2030.
Bitcoin reached $66,500 last Friday, a two-month high. This surge followed the US Federal Reserve's interest rate cut on September 18. Fresh market liquidity and renewed investor confidence in risk assets fueled the rise.
But Doctor Profit predicts a much more significant growth for the cryptocurrency. He sees potential for massive increases in market capitalization and price over the coming years. Doctor Profit's analysis draws parallels with gold. Gold currently has a market cap of around $16 trillion. He bases his calculations on several factors. These include new liquidity inflows and movements in the gold market.
The analyst estimates gold's market cap could rise to between $13 trillion and $19 trillion. This shift could strengthen Bitcoin's position as an alternative asset.
Doctor Profit's analysis considers inflation and Bitcoin scarcity. Estimates suggest about 15 million BTC are in circulation. Approximately 6 million BTC are believed lost forever. This scarcity could drive Bitcoin's value higher.
The analyst also factors in projected increases in the M2 money supply. He expects it to grow from $21 trillion to $33 trillion by 2028. This expansion should further boost BTC's price over that period.
Doctor Profit anticipates periodic corrections in Bitcoin's upward trend. He views these as healthy occurrences and expects at least 3-4 significant corrections of 40-50%.
These may occur as Bitcoin approaches key price milestones.
These correction points could include $120,000, $160,000, and $220,000. All would notably surpass BTC's current record high of $73,700, reached in March this year.
Doctor Profit emphasizes that these corrections represent opportunities for long-term investors. He clarifies that a long-term strategy can include both active trading and holding. The analyst advises viewing corrections as chances to buy at lower prices.
This bold prediction comes amid ongoing volatility in the crypto market. Regulatory uncertainties and macroeconomic factors continue to influence Bitcoin's performance, investors are advised to approach such forecasts with caution and conduct thorough research.