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The Bitcoin Analyst Who Nailed The Run To $2,000 Sees $100,000 Upside

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The Bitcoin Analyst Who Nailed The Run To $2,000 Sees $100,000 Upside

The price of one bitcoin soared above the $2,000 mark in May, which caused many to scratch their heads and wonder how a $100 investment in the digital currency in 2010 could now be worth $70 million.

Among the few not surprised by bitcoin's move in 2017 is Saxo Bank's Kay Van-Petersen. According to a CNBC report, the analyst accurately predicted in December of last year that bitcoin would rise above the $2,000 mark in 2017. Maybe investors will now be paying closer attention to Van-Petersen's latest bitcoin price target: $100,000.

The Math

Van-Petersen now forecasts the price of bitcoin to rise to $100,000 within the next 10 years, which implies a return of nearly 3,500 percent from its recent highs. The analyst believes that bitcoin and other cryptocurrencies will account for 10 percent of the total average daily volume of fiat currency trades in the future.

A 10-percent share of the foreign exchange average daily volume implies that $175 billion worth of bitcoin would change hands each day. Also, Van-Petersen believes the total market capitalization of bitcoin would soar to $1.75 trillion in 10 years from its current value of around $37.8 billion.

Currently there are around 16.3 million bitcoins in existence. Trends indicate this will rise to 17 million in 10 years and peak at 21 million units in the year 2140. As such, 17 million bitcoins divided by a $1.75 trillion market cap yields a per unit value of around $100,000.

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