Bitcoin (BTC) Price Could Hit $550,000 Amid Market Changes, Analyst Predicts

Bitcoin (BTC) reached a two-month high of $66,500 last Friday, fueled by fresh market liquidity and renewed investor confidence in risk assets following the US Federal Reserve's (Fed) interest rate cut on September 18.

Crypto analyst Doctor Profit has outlined an optimistic outlook for Bitcoin (BTC), predicting that its market capitalization and price could increase significantly over the coming years if past growth patterns continue.

In a recent social media post, Doctor Profit shared his analysis, arguing that the flagship cryptocurrency could reach a market capitalization of $8 trillion, which he estimates would be equivalent to a price of around $550,000 by 2030.

Doctor Profit’s analysis compares Bitcoin’s potential to gold, which currently has a market cap of around $16 trillion. He bases his calculations on several factors, including new liquidity inflows and movements in the gold market.

The analyst’s analysis also includes considerations of inflation and the substantial amount of Bitcoin that is effectively lost. With estimates suggesting that about 15 million BTC are still in circulation and around 6 million BTC lost forever, the scarcity of Bitcoin could drive its value higher.

In addition, Doctor Profit expects the M2 money supply – the Fed’s estimate of the total money supply, including the cash people hold in their hands – to increase from $21 trillion to $33 trillion by 2028, which should further boost BTC’s price over that period.

The analyst discussed technical analysis, suggesting that while Bitcoin might face periodic corrections—a healthy occurrence in any upward trend—these should not be mistaken for bear markets.

Doctor Profit expects 3-4 significant corrections of 40-50% as Bitcoin approaches milestones such as $120,000, $160,000, and $220,000, notably surpassing BTC’s current record high of $73,700 reached in March this year. However, he emphasizes that these corrections represent opportunities rather than risks for long-term investors.

Doctor Profit also clarified that a long-term investment strategy can include active trading and holding. The analyst believes that corrections should not deter investors but rather be viewed as chances to buy at lower prices.

At the time of writing, the largest cryptocurrency on the market is trading at $63,590, recording losses of 3.4% in the 24-hour.

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