Bitcoin Price Predictions: Can the BTC Crypto Really Reach $4.8 Million?

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If Bitcoin (BTC-USD) becomes “the global reserve asset,” the cryptocurrency’s price may soar to $4.8 million, VanEck theorized. The $4.8 million figure is one of the most bullish Bitcoin price predictions ever made.

Bitcoin (BTC-USD) on american dollar banknote close up
Source: FabrikaSimf / Shutterstock.com

The estimate comes after the cryptocurrency has fluctuated between gains and losses in recent days, driven partly by a billionaire’s intention to purchase more Bitcoin on the one hand and worries about increased regulation on the other.

Can VanEck’s bold declaration chart a course for Bitcoin to head much, much higher?

Big Bitcoin Price Predictions

Despite its belief that Bitcoin’s value could approach $5 million, VanEck is not guaranteeing that BTC will make that jump. In fact, analysts state that there is a better chance of the  Chinese yuan becoming the global reserve currency. And CoinTelegraph, a cryptocurrency publication, conceded that the chances of Bitcoin becoming the global reserve asset are not great, as it called the hypothetical situation raised by Van Eck “a big ‘if.’”

According to Investopedia, the U.S. dollar became the world’s reserve currency back in 1944, when 44 nations that had been victorious in World War II agreed to link their currencies to the dollar. Previously, most nations linked their currencies to gold. And, instead of accumulating gold reserves as their primary form of savings, countries switched to accumulating U.S. dollars. They did so largely in the form of U.S. Treasury bonds.

Now, things could be changing. Some have argued that, given the huge budget deficits and the gigantic debt of the U.S. government, the dollar should no longer be the world’s reserve currency.

Moreover, VanEck theorizes that, because the recent sanctions on Russia’s central bank eliminated its U.S. dollar, euro, and Japanese yen holdings, countries’ demand for other nations’ currencies will decline. As a result, the firm tested scenarios in which gold and Bitcoin emerge as the primary global savings instruments.

However, the firm said that the Bitcoin price predictions at which it arrived must be lowered by investors because the scenario does not have a great probability of occurring. Indeed, VanEck warned that “Our key point is that we are starting with extreme scenarios that may not happen, or may not happen completely.”

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/bitcoin-price-predictions-can-the-btc-crypto-really-reach-4-8-million/.

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