Bitcoin

Bitcoin Could Hit $500,000 by October 2025, According to This Billionaire Investor

Published

10 months ago

22 June, 2024

Bitcoin Could Hit $500,000 by October 2025, According to This Billionaire Investor

Halving could be a huge catalyst for Bitcoin, according to billionaire venture capitalist Chamath Palihapitiya.

Over the first six months of 2024, you’ve probably heard all kinds of ultra-optimistic predictions about where the price of Bitcoin (Bitcoin 0.10%) could be next. International bank Standard Chartered, for example, now believes that Bitcoin could rise to $150,000 by the end of 2024.

This price target is aggressive, but it may not be aggressive enough. Billionaire venture capitalist Chamath Palihapitiya thinks Bitcoin it could reach $500,000 by October 2025. According to Palihapitiya, two main catalysts could make this happen.

Bitcoin Halving

The main catalyst for rapid price appreciation is the reduce by half. Bitcoin recently had its fourth halving on April 19, and the current expectation is that this event will unlock tremendous value over the next year.

Image source: Getty Images.

On each halving, the reward pays the Bitcoin Miners is cut in half. This may not seem like a big deal (unless you are a Bitcoin miner), but it has profound implications for the price of Bitcoin. First, the halving increases Bitcoin’s scarcity. Secondly, it also increases the anti-inflationary nature of Bitcoin, making it even more sought after as a hedge against inflation.

It is the combination of these two factors that has led to truly stratospheric returns for Bitcoin in previous halving cycles. In May 2020, for example, Bitcoin soared from a price of around $8,800 to a (then) all-time high of $69,000 in November 2021.

To model Bitcoin’s future price performance, Palihapitiya analyzed Bitcoin price performance at different time frames of the 2020 halving cycle. During the first three months, Bitcoin’s price increased by “only” a multiple of 1 .37x, as investors tried to figure out what was going on with Bitcoin. But as the effects of the halving began to manifest, the price of Bitcoin skyrocketed a multiple of 6.51x in 12 months and 7.8x in 18 months.

Using these numbers, Palihapitiya says it is possible to construct a potential timeline for how Bitcoin’s price could increase during the 2024 halving cycle. We can likely expect Bitcoin’s price to trade sideways for much of the summer. This marks the first three months of the cycle. But Bitcoin’s price could start to heat up as we head into fall and winter. Next April, the price of Bitcoin could be on its way to $500,000.

Of course, past performance is no guarantee of future performance. Just because Bitcoin behaved a certain way four years ago is no guarantee it will behave the same way today. To some extent, Palihapitiya recognizes this. Given the even larger price gains in the 2012 and 2016 halving cycles, Palihapitiya focused only on the 2020 halving cycle to keep price estimates as conservative as possible.

Bitcoin as a reserve asset

The second key factor is Bitcoin’s growing opportunity to become a global reserve asset. According to Palihapitiya, non-Western nations are increasingly likely to become “dual currency.” This means they will choose to hold their national currencies and Bitcoin.

You’re probably thinking: why would a nation want to hold Bitcoin when it can hold US dollars? Well, let’s consider the situation of the dollar. The US is adding $1 trillion in new debt every 100 days and its budget deficits are becoming worrying. The more debt the US takes on, the more money it needs to print and the less valuable the dollar becomes. Palihapitiya refers to this as the “dollar debasement” process.

Given this context, it is possible to understand why some non-Western nations may no longer want to hold dollars. Case in point: Saudi Arabia is rethinking its petrodollar deal with the United States. This agreement, which has lasted 50 years, is arguably one of the most important pillars of the modern global economy. It forces everyone in the world to buy dollars to buy oil and ensures a constant demand for US debt.

If nations around the world start holding fewer dollars, it could open the door for Bitcoin. Add in the fact that many institutional investors now view Bitcoin as a form of “digital gold” and it’s easy to see the path for Bitcoin to become a reserve asset. At some point, Palihapitiya believes Bitcoin could completely replace gold.

What is the probability of this scenario?

While it is possible to poke holes in the “Bitcoin halving leads to huge price gains” thesis, even skeptics have to admit that there is something fundamentally new this time with the 2024 halving. we had spot Bitcoin ETFs, and that can make all the difference. Any selling pressure in the crypto market could be offset by new investor flows into ETFs.

As a result, I am still bullish on Bitcoin despite its recent indifferent performance since the April halving. If everything goes according to plan, crypto investors could have a lot to celebrate in 2025.

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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