‘Potentially Dramatic’ – Bitcoin Could Hit $1.3 Million in This Radical Crypto Price Prediction Scenario

Bitcoin, after hitting all-time highs last year, has been somewhat stagnant so far in 2022, though traders are bracing for “big surprises” this week.

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The price of bitcoin has fallen to less than $50,000 per bitcoin from highs of nearly $70,000 late last year as Russia’s war in Ukraine sent shockwaves through people. global markets.

Now, a crypto price prediction has predicted a potential bitcoin price of $1.3 million, calling the “rise” in gold and bitcoin “potentially dramatic.”

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“Our emerging markets bond investment team has attempted to quantify the emergence of new gold- or bitcoin-backed monetary regimes,” analysts at investment manager Van Eck wrote in a note this week, noting that the money was changing following “sanctions on the central bank of Russia”. ” which eliminated its reserves in US dollars, euros and yen.

“The bottom line is that the upside of gold and bitcoin is potentially dramatic. Specifically, the framework estimates gold prices at around $31,000 per ounce and potential bitcoin prices at around $1.3 million per coin. Adjusting to increased constraints on the financial and monetary systems even generates higher prices.”

However, note authors Eric Fine, Head of Active Emerging Markets Debt and Natalia Gurushina, Chief Emerging Markets Fixed Income Strategy Economist at Van Eck, warned that “prices generated in this extreme scenario in which the gold or bitcoin becoming the reserve asset obviously needs to be adjusted downwards – they are just a starting point.”

“Crypto’s upside looks much higher (around 33x) than gold’s (around 16x), despite gold being the easiest initial response from central banks in particular,” the analysts wrote. “However, individual actors may be quicker to act.”

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Expectations that countries and central banks could start buying bitcoin and crypto have risen in recent months, first sparked by El Salvador’s adoption of bitcoin, then by tough financial sanctions imposed on Russia. , including its startup of the global interbank payment network SWIFT and much of its central bank foreign exchange reserves are seized.

In January, Wall Street giant Fidelity predicted that other countries and even a central bank could follow El Salvador into bitcoin this year, saying those who buy bitcoin when the price is low “will be more competitive than their counterparts. peers”.

“There is a very high-stakes game theory here that if bitcoin adoption increases, countries securing bitcoin today will be better off than their peers,” wrote Fidelity analysts Chris Kuiper and Jack Neureuter in a note, adding that they “wouldn’t be surprised to see other sovereign nation states acquiring bitcoin in 2022 and perhaps even seeing a central bank make an acquisition.”

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‘Potentially Dramatic’ – Bitcoin Could Hit $1.3 Million in This Radical Crypto Price Prediction Scenario

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