The European Central Bank (ECB) has caused a stir in the cryptocurrency community by saying that Bitcoin’s market capitalization could reach $10 million. Notably, the ECB believes that Bitcoin’s price has no rational basis in the traditional economic sense and that its price is highly volatile and difficult to predict.
ECB predicts Bitcoin price will reach $10 million
An excerpt from a paper written by researchers at the European Central Bank (ECB) (Distributional Consequences of Bitcoin) has caused a stir in the crypto community, which shared the ECB’s $10 million Bitcoin price prediction, which is based on predictions by notable figures such as Cathie Wood and Robert F. Kennedy Jr.
It is noteworthy that central banks have harshly criticized the promoters of Bitcoin, claiming they see Bitcoin as a
promised investment asset with high capital gains, while rarely committing to the economic functions of Bitcoin.
"While Bitcoin's current market value is between $50,000 and $60,000, it can be said that any price for Bitcoin is equally reasonable, including $10 million or higher." However, it warns that these prices have no "specific economic justification or presumed basis."
Central banks warn that supporters predict Bitcoin's market value will far exceed the total of stocks and gold. Notably, according to the International Capital Market Association, the global bond market is estimated to be around €1.3 trillion.
BTC price is expected to reach $1 million this decade.
Wall Street giants and well-known analysts predict that the price of Bitcoin will reach at least $100,000 during this bull market. Ark Invest CEO Cathie Wood and MicroStrategy Executive Chairman Michael Saylor have reiterated their forecast for the BTC price, stating that by 2030, the price of BTC will reach at least $1 million.
There are many reasons behind the high price of Bitcoin, including spot Bitcoin ETF, adoption by global companies, and technological innovations in the blockchain industry, etc. However, this controversial report from the European Central Bank has raised some concerns. Analyst Tuur Demeester warned that the report's negative portrayal of Bitcoin could provide grounds for the European Central Bank's harsh Bitcoin regulations (including a possible ban).
Additionally, renowned Bitcoin extremist Max Keiser has doubled his Bitcoin price target. According to this prediction, Bitcoin will soar to $220,000, with gold playing a key role in this trend.
The current trading price of BTC is $68,357, with a 24-hour low and high of $68,208 and $69,462 respectively. Additionally, due to FOMO from 'last Friday', trading volume increased by 76% in the past 24 hours.
Renowned analyst Michael van de Poppe stated, "I believe we are about to set new highs. I don't know if it will be this month or next month, but the bull market has arrived. If that happens, I will buy the dip."
