After noticing the extremely bullish performance of Bitcoin (BTC) in the recent bull cycle, analysts and experts are predicting that the world’s largest cryptocurrency could reach the milestone of $1 trillion in market capitalization. However, they think that there is only one hurdle on the way of the leading digital currency towards registering this significant achievement in the record book.
The senior commodity strategist at Bloomberg Intelligence Mike McGlone seems to have an optimistic attitude towards the top-ranked digital asset as he has outlined a highly bullish prediction for Bitcoin. He is of the view that Bitcoin might be able to hit $1 trillion in market capitalization and it could happen by the end of the year 2022.
While describing its prediction, McGlone said that there is one hurdle that is currently restricting Bitcoin from reaching this milestone, and that primary hurdle is $20,000, the all-time time high value of the coin. If this hurdle is broken, it will pave the way for Bitcoin to achieve $1 trillion in market capitalization.
He added, “the digital version of gold but with more-limited supply and a history of adding zeros, appears to be in an early price-discovery stage and may simply continue its ascent in 2021. Mainstream adoption is rising.”
Bitcoin will have to post a price rally of nearly 200 percent in order to claim $1 trillion in market capitalization. It means Bitcoin’s price would be around $50,000 if it happens. Currently, the price of Bitcoin is revolving at around the level of $18,000 and the market cap of the coin is standing at around $343 billion, as per the data shown on CoinMarketCap.
The flagship cryptocurrency, however, has reached an all-time high value in market capitalization by surging above $350 billion recently. Commenting on this achievement, the Chief Executive Officer of Blockchain.com Peter Smith said that while the buzz is all around Bitcoin’s price spiking to $18k, the interesting thing to note is Bitcoin’s market cap hitting an all-time high.
If Bitcoin reaches a $1 trillion market cap, it would be able to take its place in the list of top five assets in the world by market capitalization. It would be then in competition with Apple, Microsoft, and Amazon for achieving the rank of the world’s largest asset. Currently, Apple (AAPL) is the largest asset in the world with a market cap of nearly $2 trillion.