Bitcoin Price Prediction: Will BTC reach $700,000?

Recently, a large "Bitcoin whale" was discovered in the cryptocurrency market. According to reports, the Bitcoin whale has just transferred more than $250 million worth of Bitcoin from a very old Bitcoin address. Such a large-scale movement can have a huge impact on the value of digital currencies.

However, orders of this nature do not go through the normal trading platforms. This would greatly disrupt the price of the currency on the market. Therefore, they have adopted another way of operating.

Bitcoin has yet to start a major bullish run. Many investors and traders are patiently waiting for a sharp recovery in the crypto market. However, no one knows how big the next recovery will be and when it will happen.

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John Pfeffer

Hopeful about the future of Bitcoin

The Sohu Investment Conference, held annually in New York, provides a platform for the best managers and investors of Wall Street hedge funds to showcase their stock picking supervisors. On the 23rd anniversary of the conference, a special digital investment currency was recommended on stage. Some of the most influential market players came up with Bitcoin price predictions with astronomical returns.

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Market analysts’ predictions for Bitcoin price

John Pfeffer, a partner at Pfeffer Capital, predicts that the price of Bitcoin will increase by about 200 times, reaching about $700,000 in the future.

While Pfeffer did not specify a certain time frame, there are other investors who have. Venture capitalist Tim Draper has predicted a price target of $250,000 for Bitcoin by 2022. When considering Draper’s prediction, Pfeffer’s prediction seems optimistic.

At the conference, Pfeffer described Bitcoin as “the first viable candidate to replace gold.” When we analyze his logic, it becomes clear that first he believes Bitcoin can replace entire plates of gold owned by private investors because Bitcoin is easier to store and protect than a plate of gold buried in a garden or placed in a deposit box at a bank.

Pfeffer assumes that the value of the entire gold plate currently in the hands of private investors is about $16 trillion. He goes on to calculate that, assuming that the number of circulating Bitcoins is 18 million, by the time the cryptocurrency completely replaces the gold plate, the expected value of Bitcoin is estimated at $90,000, and he gives an 8% chance of prediction.

Pfeffer wants Bitcoin to become the traditional foreign currency of central banks. While he knows that Bitcoin cannot completely replace all foreign currencies worth about $12.7 trillion, he hopes to replace a quarter of it. Even if it is difficult to imagine, if the value of Bitcoin reaches a level that matches all foreign reserves (including foreign exchange reserves and gold plates), it will be worth more than $700,000.

For the past two years, Pfeffer has been investing in cryptocurrencies other than Bitcoin. However, he has returned to investing only in Bitcoin. His reasoning is because other currencies are more complicated than Bitcoin.

Pfeffer pointed out that the value of a cryptocurrency is determined by its complete economic practice divided by the currency's exchange rate. For example, due to its constant exchange rate, the value of a coin will always be under pressure.

Pfeffer sees Bitcoin from the opposite perspective. He says, “There is a way out of this value trap, and that is people wanting to store their wealth in a crypto asset.” At this point, Bitcoin is saved, so it can replace gold as he predicts.