Bitcoin's price has fluctuated wildly over the past week, and its unpredictability has baffled the market. On March 14, 2024, the cryptocurrency hit an all-time high of $73,750.07, and bulls were in a mood to celebrate. Nevertheless, the bears were able to outsmart the bulls, and after falling as low as $61,000 at one point, the price stabilized at $64,581, down 12.55% from its all-time high. However, BTC is still showing strong results since last month and the beginning of the year, increasing in value by 26% and 133%, respectively. Due to its performance, experts and analysts predict that the price of Bitcoin will reach $ 3.8 million in 2030. Let's explore the reasons behind this.
Bitcoin market performance
Bitcoin price is currently $64,714.38 with a trading range of $62,355 to $64,834.24. Volume decreased by 11.21% to $36.54 billion. This indicates that the level of buy and sell transactions is decreasing. Perhaps this could lead to less interest and anxiety among traders, which could ultimately lead to lower volatility. According to CoinMarketCap, it continues to hold the top spot in the market with a market capitalization of $1.27 trillion and a circulating supply of 19,661,956 BTC.
Why Bitcoin price will reach $3.8 million in 2030
famous investor Cathie Wood Ark Invest's Ark Invest predicted a surprising target price for Bitcoin, saying it could reach $3.8 million by 2030. Wood shared this prediction at the Bitcoin Investor Day event in New York on Friday. In a previous prediction in January, she suggested that Bitcoin could reach $1.5 million by 2030. ARK Invest's CEO gave his reasons for doubling the forecast price.
1. Institutional investors
Wood believes that if institutional investors allocate just over 5% of their portfolios to Bitcoin, her forecast would reach $3.8 million. The SEC recently approved spots for Bitcoin ETFs from Wood's company, as well as BlackRock and Fidelity. This increased demand for Bitcoin and led to record inflows into US ETFs. Wood's prediction is in line with other experts' bullish outlook for Bitcoin, with some predicting it could reach nearly $100,000 by 2025.
Despite recent volatility, Bitcoin has shown resilience and experienced a sharp rally following the Federal Reserve's decision to keep interest rates stable. Wood's prediction also reflects growing institutional interest in Bitcoin and broader trends towards digital assets and blockchain technology. ARK Invest predicts that the total market value of digital assets could reach $220 trillion by 2030.
2. Bitcoin halving
Woods said the upcoming Bitcoin halving event in April is expected to further increase demand due to a supply shock. This is echoed by industry experts who predict that Bitcoin's upcoming halving event in April could create a supply shock that could further intensify the current demand-driven bull market.
At the Reflexivity Research conference, Wood said he expects the next halving to have a similar impact as past halvings. In the year following three halvings in 2012, 2016, and 2020, Bitcoin's value soared 8,069%, 284%, and 559%, respectively.
Wood claimed that he believes Bitcoin has a long way to go. The cryptocurrency market is just beginning to establish a financial system designed specifically for the internet and eliminating all intermediaries.
Our goal
Analysts report that Bitcoin's value has fallen recently, falling below $70,000. They argue that investors could benefit from examining whether this change resulted in a decline in trading activity in the futures market.
CryptoQuant charts display Bitcoin funding rates and indicate whether buyers or sellers are more actively executing orders. High funding rates often lead to lengthy liquidation cascades. Therefore, a positive funding rate is required, but an excessively high value may be a concern.
The chart shows recent price declines. This decline in funding rates indicates weakness in the futures market. This could signal favorable developments with further sales declines, which could lead to a sustained rise in Bitcoin prices.
