Nic Carter, founding partner at Castle Island Ventures, has said Bitcoin could reach $900,000 in the long term, drawing comparisons to gold and citing factors such as growing institutional adoption.
As Bitcoin sells for $103,967, analysts are revising their long-term valuation for BTC, proposing new highs. They cite factors such as adoption by institutional players, possible integration by sovereign entities and its comparison with gold as a store of value.
Experts have drawn parallels between the market capitalization of Bitcoin and gold, citing the possibility of the cryptocurrency matching the market capitalization of gold. Nic Carter of Castle Island Ventures highlighted this potential and projected a long-term Bitcoin price of $900,000.
Institutional strategies for Bitcoin
Carter notes that institutional participation has significantly increased Bitcoin’s prominence. Strategies such as MicroStrategy’s use of fixed income markets to fund Bitcoin purchases have demonstrated the profitability of such investments, with substantial premiums on their holdings.
As Carter points out, these trends demonstrate the growing interest in Bitcoin as an investment vehicle, especially among entities that cannot purchase the cryptocurrency directly.
Additionally, regulatory changes in Washington could open new opportunities for broader adoption. Carter suggests that policies such as ending debanking and custody of Bitcoin by major banks could trigger a new wave of institutional and sovereign adoption.
Proposals for Bitcoin as a strategic reserve
Furthermore, Bitcoin’s role in addressing tax challenges has also attracted attention. Before, VanEck proposed a model in which the US Treasury could strategically acquire Bitcoin to mitigate the national debt.
This proposal involves the purchase of one million BTC tokens over five years at an average price of $250,000 per Bitcoin. In theory, such strategic reserves could align with Senator Cynthia Lummis’ vision while addressing inflation and fiscal sustainability.
These developments coincide with broader market trends, such as noted by VanEck CEO Jan van Eck. His forecast for Bitcoin to reach between $150,000 and $170,000 by 2025 reflects growing confidence in the asset’s resilience.
The asset’s 124.4% year-to-date return further underlines its market dominance in 2024, far outpacing gold’s 28.1% return.
