Crazy talk or nonsense? Wall Street analysts say Bitcoin will reach $100,000!

CNBC reported on the afternoon of the 31st Beijing time that an analyst who had accurately predicted the rise of Bitcoin this year said that the price of this cryptocurrency is expected to reach $100,000 within 10 years, which means a further increase of 3483% from the recent record high.

Last December, Saxo Bank published its annual report titled “Amazing Predictions,” one of which was that Bitcoin would reach $2,000 this year. When the report was published, the price of Bitcoin was still around $754, and on May 20 this year, it broke through $2,000 for the first time.

Now, Saxo Bank analyst Kay Van-Petersen, who made the prediction, is looking at Bitcoin’s long-term trend and predicts further significant gains in the future.

How did he calculate this 10-year target price?

Peterson posits that all cryptocurrencies — not just Bitcoin — will make up 10% of the average daily volume of fiat currency trade within a decade. The Bank for International Settlements estimates that global foreign exchange volume currently averages just over $5 trillion per day.

Based on this number, 10% of $5 trillion is $500 billion. This is the average daily trading volume that cryptocurrencies may have, and Bitcoin will account for 35% of it, or $175 billion, which means that Bitcoin's daily trading volume will reach $175 billion.

Peterson estimates that in 10 years, the total market value of Bitcoin will be 10 times the average daily trading volume, or $1.75 trillion. According to CoinDesk data, the current global total market value of Bitcoin is $37.8 billion.

Bitcoin's supply is expected to reach a cap of 21 million by 2140. Peterson expects the number of bitcoins in circulation to increase from 16.3 million now to 17 million in 10 years.

Dividing the $1.75 trillion market cap by the number of 17 million coins gives us the target price of Bitcoin in 10 years, with each coin worth slightly more than $100,000.