Last Updated on December 6, 2023 by SPN Editor
Adam Back, the CEO of Blockstream and a key contributor to Bitcoin technologies like the Lightning Network, has made a bold prediction about the future of Bitcoin. He believes that the leading cryptocurrency could reach a staggering value of $700,000.
The CEO of Blockstream sees Bitcoin as the digital counterpart to gold and is confident that it will eventually surpass the value of physical gold. He suggests this could happen within the current halving cycle, which is a period in Bitcoin’s lifecycle where the number of new Bitcoins entering circulation is reduced by half.
“Bitcoin, the digital gold, is bound to outshine physical gold sooner or later, possibly within this halving cycle. At present, this would mean a Bitcoin value of $700k, but it could also partially replace gold (as some people might start selling gold to buy Bitcoin, thus crossing the market caps at a lower value),” Blockstream CEO explained.
Back’s optimism is tied to Bitcoin’s potential to exceed gold’s market cap in the near future, with the upcoming Bitcoin halving event in April next year playing a crucial role. This event, which reduces the supply of new Bitcoins, could drive up the price if demand remains strong or increases.
Blockstream, under Back’s leadership, has been instrumental in developing the Bitcoin Lightning Network, which has significantly improved the efficiency of small Bitcoin transactions. This innovation has enabled faster and cheaper transactions compared to traditional Bitcoin payments.
Back had previously predicted in August that Bitcoin could climb to unprecedented levels, crossing the $100,000 mark before the next halving in 2024.
Many crypto experts suggest the following price of Bitcoin in the coming years.
|Predicted Bitcoin Price Range
|$105,646 – $117,269
|$112,851 – $249,578
|$278,816 – $300,000
|$504,000 – $573,000
Meanwhile, the cryptocurrency market experienced a significant surge on Monday due to a combination of factors. Panic buying, anticipation of lower interest rates, and upcoming decisions on spot Bitcoin ETFs all contributed to this momentum.
Matrixport, a crypto investment services provider also noted a significant increase in the premium of Bitcoin perpetual futures compared to the spot price. This indicates that traders are eagerly jumping on the Bitcoin bandwagon, driven by the fear of missing out on the current rally.
Matrixport analysts pointed out the unusual market dynamics, with the premium on perpetual futures rising above the usual 5-10% range to 10-15%, and even reaching 20-30% at times. This suggests a rush among traders to either close their short positions or increase their leveraged long positions.
The global crypto market cap rose to $1.54 trillion, marking a 3.58% increase in the last 24 hours, reflecting the strong momentum in the market.