VanEck sees Bitcoin's price rising to $500,000 over time

According to Matthew Sigel, head of research into digital assets at VanEck, Bitcoin (BTC) can eventually rise to $500,000. That amount is not a price target for this year or this market cycle, but a target for the longer term.

Remarkably, at the same time, Sigel is abandoning its previous price target of $180,000 for the current cycle. He wants to put less emphasis on predictions for one cycle and mainly looks at the greater development of Bitcoin. For 2050, VanEck even has a scenario in which the Bitcoin price rises to 3 million dollars.

The comparison with gold is central to VanEck's calculation. Sigel expects that Bitcoin will eventually be able to take over part of the role of gold as a means of asset storage.

If Bitcoin captures a significant portion of that market, according to his calculation, a rate of about $500,000 would be possible.

The growing interest of major investors and governments also plays a role in this. If more countries hold Bitcoin as a reserve, the position of BTC within the financial system can continue to grow.

That's why Sigel calls $500,000 his "North Star". It is a benchmark to measure the development of Bitcoin, without attaching a specific date to it.

That's also why he's dropping his previous $180,000 price target. According to Sigel, the development of Bitcoin in the longer term ultimately says more than a prediction for one market cycle.

For 2050, VanEck's scenario goes much further. The asset manager has calculated that Bitcoin could eventually become worth about $3 million.

For this, the role of BTC must grow drastically worldwide. For example, Bitcoin should be used more often for international trade and payments for energy. The currency should also take over part of the role of traditional currency.

Sigel also sees money devaluation as a possible driver. When traditional currencies lose purchasing power due to inflation, interest in Bitcoin as an alternative to wealth preservation may increase.

According to him, younger generations can also contribute to this development, because they show more interest in the long-term holding of Bitcoin.

Another important change, according to Sigel, is the arrival of American spot Bitcoin ETFs. This allows large investors to invest in Bitcoin without having to buy and store the crypto coins themselves.

This removes an important threshold for professional investors. Bitcoin is also becoming increasingly connected to the traditional financial system via regulated trading platforms and company balances.

However, VanEck's price targets are highly dependent on this further growth. For a Bitcoin price of $500,000, BTC actually has to take over a significant part of the role of gold. The $3 million scenario requires an even bigger change, with Bitcoin gaining an important position within the global financial system.