Bitcoin ETFs, Gov’t Adoption to Drive BTC to $1M by 2029: Finance Redefined
The cryptocurrency market is experiencing a significant recovery, with the total crypto market capitalization breaching the $3 trillion mark for the first time since March. Bitcoin (BTC) has surged to an over two-month high of $97,300, bolstering analyst predictions for a rally driven by "structural" institutional and exchange-traded fund (ETF) inflows.
According to Bitwise's head of European research, André Dragosch, the expanding institutional adoption of Bitcoin may provide the necessary "structural" inflows to surpass gold's market capitalization and push its price beyond $1 million by 2029. "Our in-house prediction is $1 million by 2029. So that Bitcoin will match gold's market cap and total addressable market by 2029," he said.
Gold, currently the world's largest asset, valued at over $21.7 trillion, has been a benchmark for Bitcoin's price growth. If Bitcoin can reach its predicted price of $1 million by 2029, it would surpass gold's market capitalization and total addressable market. For the 2025 market cycle, Bitcoin may surpass $200,000 in the "base case" and $500,000 with more governmental adoption.
Meanwhile, an Abu Dhabi-based investment firm, MGX, has announced a $2 billion investment in Binance, the world's largest cryptocurrency exchange. The investment will be settled using a stablecoin linked to US President Donald Trump's family, the USD1. This marks the first institutional investment in the exchange and one of the biggest funding deals in the entire Web3 industry.
Additionally, Ethereum developers are working to improve blockchain interoperability with two new token standards: ERC-7930 and ERC-7828. The current goal is to finalize both token standards within the next two weeks, according to decentralized finance (DeFi) ecosystem development organization Wonderland.
Crypto hackers have struck again, stealing over $90 million in April, dealing another blow to the DeFi space. However, a crypto group has petitioned the Trump administration to end what it claimed was the "lawless prosecution" of open-source software developers, including Roman Storm, a creator of the crypto mixing service Tornado Cash.
Market Update
The Virtuals Protocol (VIRTUAL) token rose over 103% as the week's biggest gainer, followed by the Solayer (LAYER) token, up over 29% during the past week. Most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
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