VanEck Makes a Bold Prediction for Bitcoin (BTC), Projecting It Could Hit a Price Target of $3M by 2050

Matthew Sigel, VanEck's Head of Digital Asset Research, made the projection during a recent CNBC interview.

Asset management firm VanEck has made a bold prediction for Bitcoin (BTC), suggesting that the world’s largest cryptocurrency could hit a price target of $3 million by 2050.

During a recent interview with CNBC, Matthew Sigel, VanEck’s Head of Digital Asset Research, disclosed the projection. According to Sigel, the company arrived at the $3 million price target for Bitcoin using its proprietary model.

Potential Factors That Could Drive BTC Price to $3M By 2050

Speaking on the factors that could propel Bitcoin’s price to the $3 million target, Sigel highlighted the use of Bitcoin as a global reserve asset, with central banks allocating about 2% of their total reserves to the cryptocurrency.

Furthermore, he envisions Bitcoin being utilized in international trades by 2050. According to Sigel, these factors would potentially bring Bitcoin’s price to a target of $3 million in 2050, 26 years from now.

“If you extrapolate that out over 26 years, which is how far away 2050 is, it gets you to an annual compounded growth rate of 16%. So that’s what you need to get to that $3 million price target.”

Sigel Defends VanEck’s $3M Bitcoin Forecast

Considering the current price of Bitcoin, the prediction from VanEck might be seen as outrageous. Hitting the $3 million target requires Bitcoin to surge 4,116% from its current price of $71,152.

However, Sigel defended the projection, noting that reaching the $3 million target requires Bitcoin to register an annual compounded growth rate of 16%.

“I think people get hung up on the headline number, but what matters is the annualized return. And if you look at the annualized return, it’s actually not that crazy.”

VanEck has been consistently making multiple forecasts regarding Bitcoin’s future performance. Last month, the company issued its 2050 target for Bitcoin under three different scenarios. In a worst-case scenario, VanEck expects Bitcoin to trade at $130,314 by 2050.

The asset manager also set base-case and best-case targets for Bitcoin, projecting that BTC could change hands at $2.9 million and $52.38 million, respectively.

MicroStrategy Chairman Urges People to Buy Bitcoin

In other news, MicroStrategy executive chairman Michael Saylor is emphasizing his confidence in Bitcoin, urging people and businesses to acquire as much BTC as possible.

According to Saylor, buying Bitcoin at every opportunity remains the “best use of time.” He characterizes the premier crypto asset as the “hardest money on earth,” which encourages everyone to invest in it. The Bitcoin bull advises people to use all their cash to purchase Bitcoin.

“If you’re working for a company that has $100 million in the treasury, you have to convince the CEO to convert the treasury to Bitcoin. That’s the most creative thing you can do; it will be worth billions to them.”

Saylor’s recent comment is a viewpoint similar to one he shared earlier this month about Bitcoin with his followers. As covered earlier, Saylor told his 3.5 million followers that they might regret not committing more funds to BTC.

Meanwhile, Bitcoin is trading above the $70,000 mark, with one BTC currently priced at $71,152.

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