The pioneer cryptocurrency has been on a rampage lately, posting year-to-date returns of nearly 124%. BTC has gained over 36,050 points since the beginning of the year, going from a low of $28,950 to a new all-time high of nearly $65,000.
Despite the massive gains incurred already, this might be just the beginning of Bitcoin’s journey to the moon. A recent Bloomberg report claims that BTC will rise to $400,000.Yes, you read that right. $400,000!
The financial media company affirmed that Tesla’s decision to allocate some of its wealth into BTC represented an “inflection point” that may encourage other firms to diversify into the digital asset. Institutional investors are essentially being pressured by “the risks of missing out on the potential for Bitcoin becoming the global benchmark digital asset.”
Even though a $400,000 Bitcoin may seem far-fetched to many of us who weren’t looking past $100,000, there’s a lot of data out there that adds credence to such a fantastic bullish outlook.
More than 600,000 new Bitcoin addresses are joining the network on a daily basis, while the supply on cryptocurrency exchanges dropped to a three-year low of 2.36 million BTC.
These numbers might make more sense if you consider that there are roughly 7.80 billion people in the world.
So, if everyone were to start accumulating BTC at the current adoption rate, it would take around 13 years for every human being on the planet to have some Bitcoin. Now, if you consider that only 21 million BTC tokens can ever be minted, without counting the millions upon millions that have been lost, each person in the world can only have around 0.0269 BTC. Of course, if all Bitcoin were to be distributed equally.The law of supply and demand tells us that the mounting institutional interest in Bitcoin, when there aren’t many tokens available, may help push prices further. Therefore, before Tesla, Square, MicroStrategy, and many other institutions scoop up all the BTC available, it may be time for you to stack sats and prepare for a $400,000 Bitcoin.