Recent research by Murray A. Rudd and Dennis Porter projects the future price of Bitcoin (BTC) could reach millions of dollars. This is expressed in at least two scenarios. First, they conservatively estimate that the price of Bitcoin could break through US$1 million by mid-2028, assuming a daily withdrawal rate of 4 thousand Bitcoins.
This means that the value will be achieved in the next 3 years. However, the research said that a more significant price spike is likely to occur between 2029 and 2030 due to supply shocks. This is because the supply of Bitcoin is fixed at 21 million pieces.
Meanwhile, in the second scenario, a more bullish view considers more aggressive institutional adoption this year and the next few years. Among other things, it is based on NASDAQ's announcement on December 13, 2024 that MicroStrategy will be included in the Nasdaq 100 index (QQQ).
Furthermore, several states in the US are currently drafting legislation to establish a strategic Bitcoin reserve, which will be introduced in early 2025. This certainly underlies the bullish scenario going forward.
However, in this scenario, the achievement is quite significant and faster, namely projecting that Bitcoin could reach a price of US$1 million in early 2027 if there is a withdrawal of more than 1,000 Bitcoins per day from the liquid supply.
However, with a higher withdrawal rate, the price of Bitcoin is expected to reach US$2 million by the end of 2027 and US$5 million by early 2031. Moreover, in this second scenario, the Compound Annual Growth Rate (CAGR) is expected to reach 40.2% if 2,000 Bitcoins are removed from the liquid supply every day.
For comparison, Bitcoin's historical CAGR over the past 13 years is 99.5%.
-# Image Source: Reuters
