Fidelity Forecasts Bitcoin to Reach $100mln by 2035
Since the 2020 market collapse, Bitcoin (BTC) has been on a tear. The BTC price reached a historical high of $64,000 in April this yea2021. BTC is up 4.9% at the time of writing this article, trading at $50,061, reflecting a market cap of $941 billion. BTC is now trading at a 70% year-to-date growth.
Fidelity, a Boston-based financial firm, has projected that Bitcoin’s value will reach $100 million by 2035 in the most optimistic case scenario. This is a stunning 2100x increase from the prevailing levels. The fidelity forecast is based on the Stock-to-Flow (S2F) model established by famous crypto analyst PlanB.
Fidelity, which manages more than $10 trillion in assets under management (AUM), has been active in the cryptocurrency sector for some time. Fidelity Digital Assets, a crypto focused business, has been involved in developing institutional-grade Bitcoin solutions. Fidelity made the $100-million Bitcoin (BTC) price forecast during a recent webinar titled “Understanding Bitcoin, What Can History Teach Us?”, which was hosted by Jurrien Timmer, Fidelity’s Director of Macro.
Timmer’s S2F model predicts that the price of bitcoin will continue to rise as the yearly inflation rate falls. The Bitcoin inflation rate is bound to decline to 0.5%by the end of 2030. According to the S2F model, the price of Bitcoin should reach $1 million. In five years, by 2035, the inflation rate will have dropped to 0.2%. As a result, at this moment, the price of Bitcoin (BTC) will skyrocket above $100 million.
Analysts in the cryptocurrency industry have often referred to Bitcoin as Gold 2.0 or the perfect substitute for the actual yellow gold. Timmer likened the BTC price performance to the performance of gold in the 1970s. Surprisingly, the two asset types have a remarkable similarity.
Based on my (highly subjective) gold analog from the 1970s, bitcoin looks ready to resume its up-trend. /4 pic.twitter.com/16pZmeFKPc
— Jurrien Timmer (@TimmerFidelity) August 20, 2021
Cryptocurrency analyst Anthony Pompliano drew a comparable analogy in his latest podcast “The Best Business Show.” In the 1970s, the value of gold was about $35, according to him. Later, the United States decoupled its legal tender from the yellow metal by adopting the Fiat norm. Following that, gold had a spectacular price rise, rising all the way to $1800.
If the same thing occurs to Bitcoin, the digital currency might skyrocket 2000 times its present value. Pompliano said, “(…) if they (Fidelity) are stating that we are essentially in the 1970s for gold, but for Bitcoin today, they are asking for a very substantial rise in the price of Bitcoin.” To see Fidelity, present a graphic that indicates Bitcoin will be worth $100 million by 2035 is amazing (…).”
Pomp further stated that the S2F model is “underappreciated.” The S2F model is operating as expected, and it is expected to finish August 2021 over $47,000 levels.
— PlanB (@100trillionUSD) September 1, 2021