Experts predict that Bitcoin will reach $1 million within a decade amid the crypto boom

Bitcoin may be headed for the stratosphere, according to a new report by Bernstein. The global investment firm predicts the world’s leading digital asset could reach $200,000 by 2025, $500,000 by 2029 and—no, you’re not seeing things—$1 million per token by 2033. This decade-long rally, writes Bernstein analyst Gautam Chhugani , will be largely driven by institutional investors as the Bitcoin ETFs are approved at major wirehouses and private banking platforms.

These bold predictions were just one of the hot topics at a crypto gathering I had the pleasure of attending last week at Galaxy Digital’s headquarters in New York. Galaxy’s billionaire founder and CEO Mike Novogratz was a gracious host to a small number of visitors who hailed from broker-dealers, crypto exchanges, energy providers and everything in between.

The consensus among participants is that Bitcoin looks increasingly ready for primetime. Some big names have jumped on board recently, including Larry Fink, CEO of BlackRock, the world’s largest asset management company ($10 trillion in AUM), and even former President Donald Trump. They are “orange pilled”, as the crypto crowd likes to say.

Bitcoin’s path to $1 million depends on clearer regulations and lower rates

This was not always the case. Just five years ago, Trump tweeted that he was “not a fan of Bitcoin and other Cryptocurrencies, which are not money.” Fast forward to today, and he now says that he wants “all remaining Bitcoin to be MADE IN THE USA!!!” Both Trump and independent candidate Robert F. Kennedy Jr. accept Bitcoin as campaign donations.

For Bitcoin to really take off and reach those lofty price targets, two things need to fall into place: clearer regulations and lower interest rates. Clear rules would give both large institutions and everyday people more confidence to invest, while lower rates could make Bitcoin look more attractive compared to risk assets like cash and bonds.

Will Ethereum ETFs Attract Investors More Than Bitcoin?

Bitcoin has stolen the spotlight, but Ethereum is not too far behind. ETFs tracking the world’s number two crypto are coming, with several firms just waiting for the green light from the Securities and Exchange Commission (SEC).

The big question is: Will people buy in? Should Regular Investors Look Beyond Bitcoin?

Ethereum has some advantages over Bitcoin, such as smart contracts and decentralized applications. But it lacks Bitcoin’s compelling story and star power, and its daily trading volume is about half that of Bitcoin. These factors could sway investor interest as Ethereum ETFs hit the market.

There’s also the fact that Ethereum switched its consensus protocol from proof-of-work (PoW) to proof-of-stake (PoS) a little over two years ago. The “Merge”, as it’s called, has drastically improved efficiency, but investors don’t seem to be putting too much of a premium on this. Since the September 2022 merger, Ethereum has significantly underperformed Bitcoin.

The growing mistrust of government and its potential impact on Bitcoin

Blockchains are often called “trust machines”, but the challenge is getting more people to trust the trust machine. A major obstacle was the lack of interest from large institutions. But here’s the kicker: Trust in traditional institutions is crumbling, which — while worrying for the country — could be constructive news for decentralized assets like Bitcoin.

A recent survey by the Partnership for Public Service found that only 23% of Americans trust the federal government, down from 35% in 2022. Even worse, only 15% think the government is transparent, and a whopping 66% consider it as incompetent. These numbers show that people are losing faith in centralized systems, which may push them to alternatives like Bitcoin.

The government’s debt situation is a big part of the problem. In a new report, the Congressional Budget Office (CBO) predicts that public debt will soar from nearly $35 trillion today to a staggering $50 trillion by 2034, when debt is expected to hit 122% of the U.S. economy. This ballooning debt makes a strong case for financial innovation and diversification, potentially increasing Bitcoin’s appeal.

Voters want crypto-savvy officials

Conversely, crypto-knowledge is increasingly seen as a political asset. A recent Grayscale-Harris poll found that three out of four people want political candidates to be up to speed on innovative technology, including Bitcoin and Ethereum. More than half of likely voters said they would be more likely to support candidates who understand and support crypto.

If he maybe from Trump and RFK Jr. used, President Joe Biden seems to be warming up to digital assets. There is talk of a “Bitcoin Roundtable” in DC next month, suggesting the administration may be eager to engage with the crypto community.

Nvidia: The new market cap leader

In a related development, Nvidia, a key player in artificial intelligence (AI) and computing, briefly became the world’s most valuable listed company last week, highlighting the broader technological shift that is likely to drive both AI and cryptocurrency adoption.

At its peak, the company was valued at around $3.4 trillion, which is larger than both the French and British stock markets.

Nvidia lost its number one status on Friday as investors took profits, but I don’t believe we’ve seen the last of it. As one CFRA Research analyst put it, the chipmaker “will be the most important company to our civilization over the next decade as the world becomes more AI-driven.”

Indeed, the financial world is on the cusp of major changes, from Bitcoin’s potential price explosion to Ethereum’s ETF prospects and the AI ​​revolution. Growing distrust in traditional systems, together with regulatory developments and changing investment trends, heralds a new era of financial innovation.