A new comprehensive analysis from the Crypto Research Report (CRR) has predicted that Bitcoin (BTC) will reach approximately $19,044 in 2020 and soar to $397,727 by 2030. The report, released in June 2020, also provides price forecasts for several other major cryptocurrencies including Ethereum, Bitcoin Cash, Litecoin, and Stellar.
New Bitcoin Price Forecast
The June edition of the CRR marks the 10th publication of the report, which employs the “equation of exchange” model—an absolute valuation method inspired by John Stuart Mill's equation and later formalized by economist Irving Fisher. “The equation of exchange model is an absolute approach to valuing crypto assets,” the report states. “This means that the model gives a target price that crypto assets should be priced at based on assumptions regarding changes in supply and demand.” The researchers explain that the percentage of the total addressable market (TAM) can be used to estimate a crypto asset's implied future price.
Detailed Price Projections
After examining all variables and addressable markets, the CRR team arrived at future price estimates for BTC, ETH, LTC, BCH, and XLM. Bitcoin is expected to climb to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. Ethereum is forecast to reach $331, $3,549, and $3,644 in the same periods, respectively. Bitcoin Cash is projected to hit $414, $6,690, and $13,016. Litecoin and Stellar were also included in the analysis, though their specific price targets were not detailed in the public excerpt.
Market Size and Adoption Insights
The report estimates the current total addressable market for all cryptocurrencies at approximately $212 trillion, covering use cases such as unit of account and medium of exchange, consumer loans, offshore accounts, reserve currency, store of value, online transactions, remittance, micropayments, unbanked populations, gaming, crypto trading, ICO funding, and STO funding. The largest use case identified is as a medium of exchange. The CRR researchers believe Bitcoin is still at the very start of its adoption curve. “The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets,” they note. “If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
Furthermore, the CRR analysis estimates there are more than 40 million cryptocurrency users globally, with user numbers positively correlated to country GDP per capita. “On-chain velocity for most coins is decreasing, while off-chain velocity is increasing, currently at an all-time high,” the report highlights, providing evidence that speculative transactions on exchanges are growing faster than cryptocurrency usage for goods and services. These findings underscore the early stage of crypto adoption and the massive potential implied by the model. The full Crypto Research Report is available for further review.