Bitcoin price to hit $307k by October, then $12.5 million by 2031 - Robert Breedlove
(Kitco News) - With news that the People's Bank of China is curtailing Bitcoin in financial transactions in China, as well as tweets from Elon Musk that spooked the cryptocurrency market, investors have questioned the "store of value" moniker attached to the world's largest digital coin.
Robert Breedlove, founder & CEO of Parallax Digital, is overlooking recent volatility to maintain his long-term bullish stance and explained that volatility is a natural function of price discovery.
Breedlove told Michelle Makori, editor-in-chief of Kitco News, that over the next 10 years, Bitcoin will climb to $12.5 million in nominal terms, which would be $1 million in inflation-adjusted, 2021 terms.
His forecast is based on the assumption that the money supply will continue to grow exponentially, with the nominal value of Bitcoin growing alongside it.
"The expansion of the money supply is governed by a law, it's called the law of accelerating issuance of depreciation, so the more money you print, the more money you have to print just to keep the system going," Breedlove said.
Breedlove expects the M2 money supply to double again in the next four years, and then double again after that until the U.S. money supply grows to about 40% of the world's money supply in 10 years' time.
"During that time, I expect Bitcoin [to be] the ultimate, irrepressible non-counterparty insurance policy against central banks to appreciate in tandem, so I think its purchasing power will increase to $1 million in 2021 purchasing power [terms] but by that time, due to the expansion of the money supply…Bitcoin will actually be nominally valued at $12.5 million," he said.
Shorter-term, Breedlove expects Bitcoin to reach up to $307,000 by October, this year, based on comparing the current price cycle to historical highs.
"Historically, roughly 510 days after the halving event, the market tends to put in a new all-time high price. That would put us around mid-October," he said. "I had a model [in which] we called the next Bitcoin peak at $244,000. I modified that model after COVID because I think that the inflationary pressures on the U.S. dollar are going to become especially pronounced 18 months after the printing began, which so happens to fall in line with the next Bitcoin price peak. So, I think we can break $300,000 in this market cycle."
Breedlove is not concerned about increased regulation. "Every time we are in a bull market, every regulatory agency in the world wants to come out and say, they're doing this or that to control Bitcoin and tax it -- but ultimately Bitcoin is just a game that plays by its own rules", Breedlove said.
For more details on why Breedlove expects Bitcoin to reach an all-time high price of $307,000 before the end of this year and why Breedlove believes Central Banks will move to adopt Bitcoin watch the interview in the link above.