The world's top cryptocurrency still has plenty of upside potential.
Bitcoin's (BTC 2.11%) price has more than doubled to about $63,000 over the past 12 months. That rally was mainly driven by the approval of the first spot price Bitcoin ETFs in January, the halving of Bitcoin in April, and the market's expectations for lower interest rates.
Those catalysts drove some investors to make some extremely bullish predictions regarding Bitcoin's future. Ark Invest's Cathie Wood believes its price could hit $3.8 million by 2030, venture capitalist Chamath Palihapitiya sees a price of $1 million by 2040-2042, and Fidelity claims that its price could reach a whopping $1 billion by 2028-2030.
Image source: Getty Images.
It's impossible to tell if Bitcoin will come anywhere close to those estimates, so most investors should focus on its realistic upside potential instead of those lofty price targets. I think Bitcoin has a viable path toward reaching $100,000 by the end of 2025, which still makes it a good bet for investors who can stomach the near-term volatility.
Bitcoin would only need to replicate its average annual gains
From Jan. 1, 2014, to Jan. 1, 2024, Bitcoin's price rose from $771.40 to $43,835.62. That represented a 10-year compound annual growth rate (CAGR) of 50%. A 50% gain this year would boost Bitcoin's price to $65,800 by Jan. 1, 2025, while another 50% gain would drive its price to $98,700 by Jan. 1, 2026. So if Bitcoin merely replicates its average annual growth rate from the past decade, its price could approach $100,000 by the end of 2025.
Another factor is Bitcoin's performance after each halving, which reduces the rewards for mining the cryptocurrency every four years. Let's look back at Bitcoin's price after each of the three halvings that occurred in 2012, 2016, and 2020.
Halving Date | Price at the Time of Halving | Following Year's Peak Price |
|---|
2012 | $13 | $1,152 |
2016 | $664 | $17,760 |
2020 | $9,734 | $67,549 |
Data source: Bitpay.
Bitcoin's post-halving returns are diminishing, but that trajectory suggests its price could still rise significantly after its latest halving, which occurred on April 19, 2024. Bitcoin's price closed at $63,844 on that day. It's still hovering around that level as of this writing, but the historical data suggests it could easily climb above $100,000 by 2025.
Institutional purchases could turn the tide
Bitcoin's bulls believe that institutional purchases will drive its price to new all-time highs. According to a recent EY-Parthenon survey, 76% of institutional investors still allocated less than 5% of their portfolios to Bitcoin and other digital assets.
Cathie Wood has repeatedly claimed that if institutional investors just added "a little more than 5% of their portfolios to Bitcoin," its price would soar into the millions. Wood believes the recent approvals of Bitcoin's spot-price ETFs -- which make it easier for institutional investors to buy the cryptocurrency -- will fuel that trend.
The Federal Reserve won't cut interest rates anytime soon, but it also said it wouldn't raise rates for the foreseeable future. That stability might drive more institutional investors to load up on Bitcoin and more speculative investments this year.
Meanwhile, more businesses could accept Bitcoin for payments, while more inflation-ravaged countries could follow El Salvador's lead and adopt it as a national currency. That trend would bolster its reputation as a safe-haven asset and make it more comparable to gold, silver, and other precious metals. The U.S. Securities and Exchange Commission supports that view: it's repeatedly said that Bitcoin is the only cryptocurrency that's a commodity instead of a security.
But investors should brace for some volatile swings
I believe Bitcoin's price has a clear path toward hitting $100,000 by the end of 2025, but it will probably endure some volatile swings before it hits that target. Therefore, investors should assess the near-term risks instead of blindly following the bulls.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
FAQs
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2024 | $ 69,331.52 |
| 2025 | $ 72,798.10 |
| 2026 | $ 76,438.00 |
| 2027 | $ 80,259.90 |
1 more rowIf this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.
What is the price prediction for Bitcoin 100 000? ›
Notably, Bitcoin has demonstrated remarkable growth, surpassing a 100 percent increase in value over the past 12 months. On March 14, 2024, Bitcoin achieved an all-time intraday high of $73,835.57, igniting optimism for a potential ascent towards the coveted $100,000 milestone.
Does Motley Fool recommend Bitcoin? ›
The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, PayPal, Solana, and Tesla.
What is the highest Bitcoin price prediction for 2030? ›
Bitcoin's Price History
Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.
How much will Bitcoin be worth in 10 years? ›
However, some experts have offered bold projections. Cathie Wood, the founder, chief executive officer, and chief investment officer of ARK Invest, believes that Bitcoin could be worth $1 million per coin before 2030, as adoption by institutional investors increases.
What could Bitcoin be worth in 20 years? ›
Max Keiser predicts Bitcoin to be worth $200K in 2024. Fidelity predicts one Bitcoin will be worth $1B in 2038. Hal Finney predicted $22M per Bitcoin by 2045.
How much is $1000 in Bitcoin today worth in 2030? ›
Looking at Bitcoin's price history, halvings typically precede higher highs, followed by higher lows. If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030.
How much will 1 Bitcoin be worth in 2050? ›
Bitcoin Overview
| Year | Minimum Price | Average Price |
|---|
| 2032 | $1,556,210.36 | $1,611,674.82 |
| 2033 | $2,330,561.92 | $2,411,145.86 |
| 2040 | $3,255,046.46 | $3,568,496.11 |
| 2050 | $4,557,065.25 | $4,725,845.37 |
8 more rowsBitcoin (BTC-USD) continues its massive rally after the cryptocurrency briefly reached a new record high above $69,000, touching back down to $67,000 today. Some analysts believe that bitcoin could reach a record benchmark of $100,000 by the end of 2024, but retail investors haven't come off the sideline yet.
If BTC were to reach $250,000, it would have a market cap of nearly $5 trillion, larger than any publicly traded company in the world. It would mark a gain of roughly 300%. While Draper's estimate may seem a bit outlandish, past market moves show that it could happen, though not necessarily in 2024.
Will Bitcoin go to 200k? ›
“Low prediction will be $100,000, medium one is $140,000, and high prediction is $200,000, by the end of 2024,” Zheng explained in an interview with Cointelegraph. The positive impact of ETFs on the cryptocurrency market has made crypto investments more accessible and appealing to a broader audience.
Which crypto did Motley Fool invest in? ›
Dominic Basulto has positions in Bitcoin, Ethereum, Fetch, SUI, and Solana. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Ethereum, Fetch, Nvidia, Render Token, and Solana. The Motley Fool has a disclosure policy.
Is Motley Fool worth the money? ›
For investors looking for stock ideas and actionable guidance, Motley Fool is likely worth the reasonable annual fees. The stock research alone can pay for the membership cost if you invest in just a couple successful picks. However, more advanced investors doing their own analysis may not find sufficient value-add.
Can I trust the Motley Fool? ›
The Motley Fool is absolutely a legitimate investment research service company, not a scam. Here's a summary of the key evidence: Long track record: 28 years of operations with over 300 employees. Transparency: Clearly documents past recommendations and performance.
Will Bitcoin reach 1 million? ›
In addition to Cathie Wood of Ark Invest, who famously predicted a $1 million price in 2022, there's now Jack Dorsey, co-founder and former CEO of Twitter. In a recent interview, Dorsey suggested that Bitcoin is going to "at least a million" by 2030.
How high will Bitcoin be in 2050? ›
Bitcoin (BTC) Price Prediction 2050
With its massive potential for growth and adoption, Bitcoin is expected to remain a major player in the cryptocurrency market for years to come. By 2050, our long-term Bitcoin price prediction estimates that the maximum price could reach up to $11,94,927.3.
How high will Bitcoin go in 2026? ›
Bitcoin Price Prediction Table
| Year | Average Price* | Percent Increase |
|---|
| 2025 | $109,439.36 | 57.97% |
| 2026 | $153,101.71 | 40.37% |
| 2027 | $220,538.63 | 43.79% |
| 2028 | $318,173.75 | 44.55% |
8 more rowsEthereum (ETH) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 3,872.12 |
| 2026 | $ 4,065.73 |
| 2027 | $ 4,269.01 |
| 2030 | $ 4,941.92 |
1 more row
