Bitcoin (BTC-USD) is on track to reach $1 million per coin within the next decade, according to a new report from Bitwise. While many people think this goal is impossible, Bitwise executive Matt Hougan argues that the math is simpler than it looks. He says the big mistake people make is only comparing Bitcoin to the current value of gold. Instead, they should look at how the entire market for safe assets is growing every year. To hit seven figures, Bitcoin doesn’t need to replace half of gold; it only needs to grab about one-sixth of the future market.
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Matt Hougan Creates a New $121 Trillion Map
The global market for store-of-value assets (also known as ‘safe havens’), things like gold (CM:XAUUSD) that people hold to protect their wealth, has been growing by 13% every year since 2004. This growth is driven by fears over government debt and world conflict. If this trend continues, Hougan predicts this market will be worth $121 trillion in ten years. In that world, Bitcoin would only need a 17% share to be worth $1 million per coin. He believes that more big money from pension funds and countries will make this goal a reality.
Bitcoin Breaks the $70,000 Barrier
While the long-term goal is $1 million, Bitcoin is already making moves in the short term. The price recently climbed back above $70,000 after a sharp drop in oil prices made investors feel more comfortable taking risks again. This recovery happened as the International Energy Agency (IEA) suggested releasing a record amount of oil reserves to lower fuel costs. When oil prices fall, it lowers the fear of inflation, which usually helps Bitcoin’s price move higher.
The Market Faces a Test at $73,000
Even though the mood is improving, Bitcoin still has a big hurdle to clear. Analysts say the price needs to stay above $70,000 to show that buyers are truly in control. The next boss level for the price is $73,000, where it has struggled to break through in the past. If Bitcoin can push past that resistance and hold its ground, it will confirm the higher lows pattern that suggests a bigger rally is building.
At the time of writing, Bitcoin is sitting at $69,860.52.
