The future of Bitcoin: The price could reach $220,000 or more by 2025, according to forecasts.

The future of Bitcoin: The price could reach $220,000 or more by 2025, according to forecasts.

In recent months, estimates and analysis linking Bitcoin's future potential to the value of gold have become increasingly common. New projections, based on the so-called "power curve", suggest that Bitcoin could reach a price of up to $220,000 in 2025 or even surpass the $250,000 mark. What's behind these estimates and what are the chances of such increases? Let's take a closer look.

Bitcoin follows gold on the road to new highs

The predictions are based on the long-term interplay with the price of gold, which is traditionally considered a safe haven and store of value. Historically, BTC/USD follows the XAU/USD (gold against the dollar) with a lag of several months, and it is this pattern that forms the basis for the new predictions. If gold reaches record highs in the next few years, such as $3,500 per ounce, and its market capitalization becomes larger, the rise in Bitcoin's price could be tremendous.

"If Bitcoin maintains its position against gold and its value returns to the level it had five years ago, we could see a price of around $444,000 this year," says an Apsk32 analyst. This estimate is based on the concept of a "power curve" that measures Bitcoin in gold ounces, eliminating the effects of US dollar inflation. Thus, according to him, it is possible that we will see significant price appreciation in the coming months or years.

Long-term scenarios: up to $1 million

Other experts, such as analyst Sam Callahan, estimate that if gold were to rise to $5,000 an ounce by 2030 and Bitcoin were to gain half its market capitalisation, its price could reach as high as $924,000. This scenario is based on the assumption that "digital gold" will become a major asset for storing value on a global scale.

The report, titled "In Gold We Trust," states that these estimates are not accurate predictions, but rather scenarios based on the gold model. They show what the potential values of non-sovereign assets could be if the trend of digital assets appreciating against traditional commodities is sustained.

What the experts say

"I have a decent chance that Bitcoin will reach the $220,000 price level in 2025, maybe even more," Apsk32 said. However, if the price were to get above $250,000, it would be a much higher than expected rise, according to him. "I believe there is potential, but it's not the most likely scenario," he adds.

Bitcoin analyst Sam Callahan warns that a shift towards "digital gold" and a rise in gold to around US$5,000 per ounce could drive the price of BTC significantly higher in the coming years. If this scenario comes to pass, the value of the cryptocurrency could theoretically be well over $1 million.

Conclusion: the scenarios for the future are varied, but one thing is certain - the relationship between gold and Bitcoin remains a key factor influencing their development. Whether you choose to believe the more conservative estimates or the bolder scenarios, one thing is clear: Bitcoin has ambitious goals ahead of it that could change the face of the financial world.


*This is not an investment recommendation.


The Coingarage team