Famous economist Timothy Peterson, known for his work titled “Metcalfe's Law as a Model for the Value of Bitcoin”, made a bold prediction about the future of Bitcoin (BTC) in a statement he made recently. According to Peterson, Bitcoin is on track to reach a staggering value of $5,000,000.
Peterson estimates that it will take about 23 years for Bitcoin to reach this value and its average annual return will be 22%. However, he notes that the average return is expected to be much higher than 22% before 2031. According to the analyst, the return will decrease significantly after 2031.
Peterson also highlighted the impact of Bitcoin ETF inflows on the market. By May 2024, the US Bitcoin ETF projects net inflows will outpace new coin production by at least $1 billion per month. This will correspond to a supply deficiency or excess demand of approximately 500 BTC per day, which, according to the analyst, means roughly the same effect as the halving.
Currently, Bitcoin ETF inflows are averaging $40 million per day and are expected to accelerate, according to the analyst. Peterson estimates that the top 9 ETFs could have accumulated $50 billion by the end of the year. By then, there's a good chance Blackrock's Bitcoin ETF (IBIT) will surpass the Assets Under Management (AUM) of its standalone gold ETF, SPDR Gold Shares (GLD), according to the analyst.
*This is not investment advice.