Hello, fellow traders! Bitcoin is hitting new all-time highs each day, and the wait after the halving is finally paying off. The excitement over Bitcoin’s recent price action is on a whole new level. In today’s blog, we’ll explore Bitcoin’s long-term price targets and discuss whether it’s possible for Bitcoin to reach the $1 million mark in the future.
We’ll look at ideas from some of Bitcoin’s biggest supporters and explore the main factors that are pushing its value higher.
So let’s talk about the main factors:
1. The Power of Numbers and Scarcity
Fred Krueger, a respected figure for his keen mathematical insights, has long emphasized that Bitcoin’s growth follows power laws, indicating that exponential growth isn’t just possible but highly probable. The key driver behind this is Bitcoin’s capped supply of 21 million coins. Every four years, a “halving” event slashes the number of newly created Bitcoins, intensifying its scarcity. This scarcity, coupled with rising demand, is what mathematically fuels Bitcoin’s price increase.
Krueger simplifies it, stating, “When demand rises while supply remains fixed or reduces, prices are bound to climb. Bitcoin’s built-in supply limitations create a self-fulfilling cycle of value growth.”
2. Early Visionaries and Their Predictions
Bitcoin’s potential was spotted early by key figures. One of its loudest champions has been Anthony Pompliano, who repeatedly underscored that Bitcoin is more than an asset—it represents a new form of digital money. He frequently says, “Bitcoin is a deflationary asset in an inflationary world.” With inflation slowly eroding the value of traditional currencies, Pompliano’s assertion resonates: people are shifting to Bitcoin not just to invest, but to safeguard their wealth.
Michael Saylor, the CEO of MicroStrategy, took the belief to a higher level. His company famously shifted millions of dollars from cash to Bitcoin, driven by his declaration, “Cash is trash.” He viewed Bitcoin as a superior asset for treasury reserves, unlike cash, which loses value over time. His bold move served as a beacon to other CEOs and financial leaders, signaling that Bitcoin was not just for tech enthusiasts but for anyone serious about protecting their finances.
Murad Mahmudov, a noted crypto strategist, further explained that Bitcoin’s price growth is tied to its adoption curve. “Every wave of adoption pushes Bitcoin higher. We saw it with the internet, and Bitcoin is no different,” he noted. His forecast is that as more people comprehend Bitcoin’s role in the digital economy, the demand will snowball.
PlanB, known for creating the influential Stock-to-Flow (S2F) model, drew significant attention with his analysis. This model connected Bitcoin’s scarcity to its market value, and for years, it’s proven remarkably accurate. “Bitcoin’s scarcity is its most valuable attribute,” he said. “Just like gold and silver, a higher stock-to-flow ratio means a higher price. Bitcoin surpasses them all.” According to his model, Bitcoin reaching $1 million isn’t a fantasy—it’s a likely outcome driven by its inherent design.
3. Institutional Involvement and the Ripple Effect
The real tipping point, as both Saylor and Pompliano emphasized, would come with institutional participation. And indeed, this shift has started. Pension funds, hedge funds, and even insurance firms seeking safe havens during uncertain economic times began allocating small portions of their portfolios to Bitcoin.
Saylor illustrated this point with a simple scenario: “Imagine if every major institution put even 1% of their assets into Bitcoin. The result would be an influx of trillions of dollars into an asset that can’t be printed or inflated.” Such inflows, even at a small scale, could dramatically boost Bitcoin’s price.
Krueger added, “It’s not about half the world investing; it’s about minor shifts in key financial arenas.” The math, he said, speaks for itself—small, incremental changes in major institutions could create a tidal wave of impact.
4. Bitcoin in National Reserves: A Game-Changer
One of the most intriguing possibilities lies in Bitcoin becoming part of the U.S. Federal Reserve’s reserves. President-elect Donald Trump has hinted at such a move on multiple occasions. If Trump, or any future influential leader, takes this step, it would signal to the world that Bitcoin isn’t just an investment—it’s a core component of global finance.
The implications would be profound. Other nations, not wanting to fall behind, might follow suit. Central banks that once ignored or dismissed Bitcoin could scramble to incorporate it into their reserves, leading to a surge in demand and pushing prices to unprecedented heights. This would bring PlanB’s and Saylor’s boldest projections within reach.
5. The Economic Backdrop: Inflation and Mistrust
Why would countries make such a move? The answer lies in economic realities. With inflation making people reconsider the value of their money, trust in traditional financial systems is waning. In hyperinflation-stricken places like Venezuela, Bitcoin has already become a safe haven. But this phenomenon isn’t limited to failing economies—people in stable economies are also starting to question their reliance on central banks that can print more money at will.
Mahmudov encapsulates this sentiment, saying, “The future is decentralized, and people are realizing that trusting governments with their financial future isn’t as safe as it once seemed.”
6. The Omega Candle: The Final Surge
PlanB and Fred Krueger have discussed the potential of what they call the “Omega Candle”—a dramatic spike in Bitcoin’s price within a short period. This could be triggered by a combination of institutional FOMO (fear of missing out), macroeconomic shifts, and major announcements like Bitcoin being added to national reserves. Imagine the year 2025: President Trump announces that Bitcoin is now part of the U.S. reserves. Banks and financial giants that had been hesitant would rush to invest, fearing they’d be left behind.
Pompliano’s take on this would be, “At that moment, everyone realizes that Bitcoin isn’t just a bet—it’s the bet.” Saylor would remind those watching that hesitation comes at a price, just as it did when Bitcoin soared past $10,000, $50,000, and $90,000.
Thank you so much. See you in the next one.
One Response
Great article. Thank you. I’m looking forward to the masses seeing what we’ve all seen when Bitcoin was created. I’m looking forward to amore stable financial future.