Chamath Palihapitiya Predicts Bitcoin Price to Reach $500,000 by Year-End: Halving Cycle Analysis.

In the latest episode of the All-In Podcast, #Palihapitiya analyzed Bitcoin's historical price trends after each halving event. In particular, it was noted that 18 months after the third halving in May 2020, the Bitcoin price increased 7.8 times.

Bitcoin's halving is a scheduled decrease in the rate of new BTC production and occurs approximately every four years. It is theorized that this event created a supply shock that pushed the price of Bitcoin higher.

The last halving took place on April 20, 2024, and the daily Bitcoin issuance was reduced from 900 BTC to 450 #BTC , which was an important turning point for the cryptocurrency market.

Based on post-third halving performance, Palihapitiya predicts that Bitcoin could reach $497,977 by October 2025. Using the average performance metric between the second and third halvings, this estimate could go as high as $1.14 million.

Palihapitiya predicts that “an increasing number of countries” such as El Salvador may adopt a dual-currency system, which could increase demand for Bitcoin.

“Countries can use local currencies for their daily transactions and Bitcoin as a permanent asset for store of value,” Palihapitiya added. If Bitcoin reaches a price above $500,000, he believes it will literally replace gold and even become a trading vehicle for high-value assets.

Palihapitiya also highlighted the impact of newly launched Bitcoin ETFs (exchange-traded funds) on expanding adoption by commercializing Bitcoin. Standard Chartered analysts predict that Bitcoin could reach $200,000 by the end of 2025 due to these strong #ETF inflows.