Popular Bitcoin and Ethereum ETF issuer VanEck sets three ambitious price targets for BTC by 2050.
VanEck, one of the issuers of Bitcoin and Ether spot-based exchange-traded fund (ETF), has set three price targets for BTC. For the base case target, VanEck projected that BTC could trade at $2,910,345 ($2.91 million) by 2050, leading to a market capitalization of $61 trillion.
Potential Factors That Could Drive BTC to $2.91M
The investment manager speculated that a massive demand for the asset class will propel Bitcoin’s potential surge to $2.91 million by 2050.
According to a report published yesterday, VanEck predicted that Bitcoin could emerge as a major medium of exchange by 2050. Under the hypothetical scenario, the company foresees Bitcoin being used for 10% of global trade settlements as well as 5% of domestic trade worldwide.
If both scenarios come to fruition, the top Bitcoin and Ether ETF issuer projected that central banks worldwide might hold 2.5% of their reserve assets in BTC.
Considering three major factors, like global economic growth, investor BTC demand, and Bitcoin turnover, the top investment manager projected that BTC could be priced at $2.91 million per coin by 2050, with its market cap totaling $61 trillion.
Hitting the projected price of $2.91 million requires Bitcoin to surge 4,220% or 42.2x from its current price of $67,360.
Furthermore, applying its existing framework used to value Ethereum Layer-2s, VanEck estimated that Bitcoin’s Layer-2 solutions could be worth $7.6 trillion or approximately 12% of BTC’s valuation by 2050.
VanEck’s Bear and Bull Case Targets for BTC
It bears mentioning that the $2.9 million price target for BTC marks VanEck’s base case projection. The investment manager also set bear and bull case targets for BTC by 2050. Interestingly, VanEck set a conservative price of $130,314 as its bear target for BTC by 2050.
Under a bullish scenario, the company envisions Bitcoin hitting an ambitious target of $52,386,207 ($52.38 million).
Notably, the asset manager speculated that Bitcoin’s potential surge to these ambitious targets could be partially fueled by a decline in the world’s major economies, including the United States, Japan, and the European Union, compared to global economic activity.
Additionally, the VanEck report suggests that demand for BTC will spike in the coming years as people lose confidence in major currencies due to unconstrained deficit spending. The report also states that the declining use of the euro and Japanese yen for international settlement creates an opportunity for Bitcoin’s adoption in global trades.
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