Saxo Bank: Bitcoin's Gonna Grow to $100,000
CryptoBit News Today1 min read
In a bold new forecast, Saxo Bank analyst Kay Van-Petersen predicts that Bitcoin could account for 10% of the $5 trillion foreign exchange market's average daily volume within the next decade. A market capitalization of $1.75 trillion would value an individual bitcoin at $100,000.
Back in December, Van-Petersen predicted that Bitcoin would hit $2,000 in 2017, a 165% rise from the December price. Bitcoin attained the $2,000 level in May before climbing to a record high of more than $2,750.
Assumptions Surrounding Forecast
Van-Petersen's forecast makes a number of bold assumptions. He projects that within 10 years, cryptocurrencies will represent 10 percent of the average daily volume in foreign exchange, or $500 billion. Van-Petersen expects bitcoin to capture 35 percent of that cryptocurrency trading volume, which equals $175 billion.
The analyst also estimates bitcoin's market capitalization at 10 times its average daily volume, yielding a total valuation of $1.75 trillion. Dividing that $1.75 trillion market cap by the 17 million bitcoins projected to be circulating in 10 years puts the price per coin at just over $100,000.
Regular Volatility Outlook and Emerging Markets
Van-Petersen previously stated in the bank's annual predictions report that increasing volumes and dropping volatility were establishing prime conditions for bitcoin to gain value. The analyst observed that while many discuss volatility, price fluctuations are negligible to people in nations such as Zimbabwe or Venezuela.
He added that although many in the West regard bitcoin as speculative, emerging markets have distinct needs and will grasp its purpose.
Not everyone shares Van-Petersen's outlook, however. Hayter indicated that bitcoin's technical capabilities and the regulatory framework established around it will also play a role in determining its value.
