Hedge funds and central banks will push Bitcoin toward $500,000: My Prediction

By 2027, the price of Bitcoin (BTC) could reach $500,000, marking one of the highs of the next cycle for the leading digital asset.

This prediction was shared on my Telegram channel.

I believe that $500,000 will become the new psychological milestone for "digital gold" in its upcoming cycle, driven by several factors.

Specifically, the rising demand from pension funds and hedge funds will push Bitcoin's price up over the years. Additionally, the asset will increase in value due to growing reserves of BTC held by central banks and governments. Moreover, Bitcoin's use in retail networks is expected to increase.

As a result, Bitcoin could come significantly closer to gold in terms of market capitalization in the coming years, though it is unlikely to surpass it.

Alternative Bitcoin Price Predictions

The well-known brokerage company Bernstein also believes in new records for Bitcoin. Their analysts expect that 2025 will be a pivotal year for BTC.

The company recently released a 160-page report dedicated to the prospects of the leading digital asset. The document suggests that BTC could reach $200,000 by the end of next year.

Popular analyst PlanB, on the other hand, is confident that Bitcoin will soon be worth $100,000. This prediction is based on the Stock-to-Flow model (which forecasts asset prices based on scarcity), which "is working like clockwork" in this case.

It is worth noting that the $500,000 prediction is not the highest. I had previously suggested that Bitcoin could reach $1 million by 2030. One of the main reasons for the asset's rise would be the growing popularity of Bitcoin ETFs among institutional investors.

However, new Bitcoin records could be set much sooner. According to another forecast from the Traders Union analyst, we could see BTC at $100,000 per coin as early as this winter. The main catalyst for this growth would be the U.S. Federal Reserve's interest rate cuts.

Also read: Binance launches direct cryptocurrency sales to cards through Paymonade