Bitcoin recently hit a two-month high of $66,500, driven by newfound market liquidity and renewed investor confidence following the US Federal Reserve's interest rate cut. Crypto analyst Doctor Profit predicts that Bitcoin could reach a market capitalization of $8 trillion, equating to a price of $550,000 by 2030 if current bullish trends persist.
Doctor Profit compares Bitcoin's potential to gold, with a current market cap of $16 trillion. If the gold market capitalization grows as expected, Bitcoin could solidify its status as an alternative asset. Factors like new liquidity inflows, gold market movements, and Bitcoin's scarcity, with around 6 million BTC lost forever, contribute to this bullish outlook.
The analyst also anticipates an increase in the M2 money supply, further influencing Bitcoin's price. While he foresees multiple corrections of 40-50% as Bitcoin approaches new milestones like $120,000, $160,000, and $220,000, these corrections are viewed as opportunities for long-term investors.
Doctor Profit underscores that while short-term fluctuations may occur, they present chances to buy lower, advocating for a blend of active trading and holding as part of a long-term investment strategy.
