Cryptos

Fidelity suggests that Bitcoin’s price could reach $ 100 Million

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Anthony Pompliano, host of “The Best Business Show” said that Fidelity, a Boston-based investment company, presented one the most bullish scenarios for Bitcoin’s price. Based on Plan B’s Stock-to Flow model, the price for Bitcoin could reach $ 100 million in 2035.

Fidelity Investment, which manages more than $ 10.4 trillion in assets, and Fidelity Digital, its digital asset company, have been long-time Bitcoin bulls. Pompliano stated that the company entered the crypto market in 2014 and has since developed BTC-based mining products and capabilities.

The Bitcoin Price Prediction was made available during a Fidelity webinar entitled “Understanding Bitcoin: What Can History Teach Us?” »By Jurrien Timmer, Macro director of the firm. Timmer, a Bitcoin bull, has been tweeting updates about the price of BTC.

He compared BTC to 1970’s gold on several occasions. Below is the chart ShareTimmer, August 20eThis chart shows the similarities between cryptocurrency, and the precious metals charts.

Source: Jurrien Timmer via Twitter

The chart shows that Bitcoin’s recent price action is similar to that of gold in the same year. Timmer believes that BTC “is ready to resume its uptrend” based on this comparison and the expansion of its fundamentals.

Timmer’s Stock-to-Flow model predicts that BTC will continue to appreciate due to a decrease in its annual inflation rate. This model predicts that Bitcoin will reach $ 1,000,000 by the end of the decade when its inflation rate is approximately 0.5%.

5 years later, when the same metric drops down to 0.2%, BTC’s price will rise to $ 100,000,000. Pompliano said that although it’s not certain if the prediction will come to pass, it’s possible.

(…) According to the Stock-to-Flow model, to which they seem to adhere (…) this is what the Stock-to-Flow model will show. As they become more interested in Bitcoin, loyalty seems to be growing more bullish.

Will Bitcoin eclipse the Gold Bull Run in the Decades To Come?

Pampliano stated that gold was worth $ 35 in the 1970s. Gold reached more than $ 1,800 after the United States redrawn its currency from precious metal and adopted the Fiat standard.

This is one of the “most incredible revaluations” of an asset in the past 100 years. Bitcoin could see a 2,000-fold increase in value from its current $ 48,845 value at the time of writing if the same thing happened. Pompliano added:

(…) If they (Fidelity) say that basically we are in the 1970s of gold but for Bitcoin now they are calling for a very, very material increase in the price of Bitcoin. To see Fidelity, showing a chart that says Bitcoin is going to be at $ 100 million by 2035 is very incredible (…).

Pompliano reiterated that Fidelity, a large investment firm in the world that spends time exploring BTC and the cryptocurrency market, is showing clients that this model is a positive sign.

The Stock-toFlow model assesses an asset to determine its value based on its supply/demand. The model has been successfully applied to stocks, gold, and other assets.

Analyst Plan B was first to apply the model to BTC. Recent updates have shown that it is correct. The model is controversial and many people disagree with it. They believe that BTC’s characteristics will make it less successful.

BTC is showing strength as bulls take out resistance at current levels. BTC could drop to $ 50,000 if it breaks above $ 48,500.

Bitcoin BTC BTCUSD
BTC rally in the daily chart Source: BTCUSD Tradingview




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