The expected market value of Bitcoin is projected to reach 3 trillion dollars by 2025, according to Brinchtain.
The market value of Bitcoin is expected to reach 3 trillion dollars by mid-2025. Analysts at Brinchtain highlighted the strong fundamentals of the cryptocurrency, noting that a significant portion of the Bitcoin supply has remained inactive for over a year. These projections come at a time when the cryptocurrency community anticipates the upcoming Bitcoin halving event, scheduled for April or May 2024, which is expected to reduce the amount of Bitcoin sold by miners from a billion dollars today to less than 500 million dollars if prices remain around the current $37,000 mark.
The Financial Accounting Standards Board (FASB) has issued new guidelines that may enhance corporate interest in Bitcoin. These guidelines allow market-based gains, which are expected to make Bitcoin an attractive option for corporate treasury assets. Additionally, the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States in early 2024 looms, providing easier access to the cryptocurrency for investors and companies.
READ MORE "Study Finds Twitter Influencers Impact Bitcoin Prices"
This optimistic outlook has been positioned against concerns of economic slowdown and anticipated debt monetization challenges in early 2024. In this context, Bitcoin’s role as a hedge against inflation is likely to become more pronounced. The combination of these factors – dormant supply, halving events reducing miner sell-offs, favorable accounting standards, and the potential creation of exchange-traded investment funds – paints a picture of increased corporate and investor interest in Bitcoin as a strategic asset in the face of macroeconomic uncertainty.
Disclaimer: The information provided is not financial advice. Chinwa.tech does not take any responsibility for investments made based on the information provided in this article. We recommend consulting a qualified specialist or financial advisor before making any investment decisions.
