Over the past seven months, the price of Bitcoin has fluctuated between $73,777 and $49,000, significantly impacting market sentiment. In a new analysis, Will Clemente III, co-founder of Reflexivity Research, discusses why he remains bullish, despite investor impatience and uncertainty.
Clemente adopts a long-term perspective, emphasizing the importance of understanding major economic trends. He suggests that the ongoing growth of the US deficit will lead to government currency debasement, making Bitcoin a strategic asset.
He calculates that if sovereign wealth and pension funds allocate just 1% of their capital to Bitcoin, it could infuse approximately $460 billion into the market, potentially raising Bitcoin's price to between $150,000 and $200,000 per unit.
If such institutions allocate up to 3%, it could mean a $1.4 trillion influx, driving Bitcoin's potential price even higher. Clemente even speculates a $1 million price per Bitcoin by 2034 due to reduced purchasing power of the dollar. However, he warns that Bitcoin's days of 100%+ CAGR are likely over.
