Grayscale Bitcoin Mini Trust (BTC)

BTC

Market cap $2.1B

Bitcoin has seen recent catalysts that could support a higher price. A fixed supply is very compelling for investors looking to park their savings.

BlackRock, the world's largest asset manager, released a report declaring Bitcoin a necessity for investor portfolios. Bitcoin's decentralized nature and low correlation to traditional assets make it a hedge against systemic financial risks and economic instability.

Several short-term tailwinds are on the horizon, each of which should fuel another jump for Bitcoin. With a finite supply of coins and a decentralized network, Bitcoin has become one of the most compelling investments for the long term.

Michael Saylor recently predicted that Bitcoin would hit a price of $13 million by 2045. To do so, Bitcoin would need to generate annualized returns of 30% for the next two decades.

Cathie Wood and Ark Invest believe cryptocurrency has the potential to completely change the global monetary system. They also think the industry will be governed by power law dynamics, meaning only a few winners will emerge.

Cathie Wood, head of Ark Invest, has made bold predictions about Bitcoin's future, setting a best-case target of $3.8 million by 2030. Major firms like BlackRock and Goldman Sachs have started incorporating Bitcoin into their portfolios, and this trend is accelerating with the approval of spot Bitcoin ETFs.

While Nvidia has outperformed Bitcoin during the past two years, the long-term upside potential of Bitcoin could be much higher. Some forecasters think Bitcoin could hit $1 million by 2030 and $13 million by 2045.

After hitting a new all-time high in March, Bitcoin is down nearly 20%. Investor inflows into the new spot Bitcoin ETFs appear to be picking up again after a brief lull in August.

Ethereum offers both a digital asset and blockchain ecosystem, unlike Bitcoin. Bitcoin's network effect and trillion-dollar market value make it difficult for new challengers to compete.