Bitcoin’s Market Cap could reach up to $5 Trillion in the next 5-10 Years

The bitcoin market could reach up to $5 trillion in the next five to ten years, ARK Investment Management LLC says.

The New-York based investment company analyzed the current BTC market and predicted its future for the next years. Bitcoin has the potential for growth as it has an attractive profile that could attract institutional investors.

Market Value to Surge by 25x

Bitcoin’s market value could surge up to 25 times and could reach $1.5 trillion. “In the United States alone, deposits totaling $14.7 trillions generate $1.3 quadrillion in settlement volumes between and among banks each year. If it were to capture 10% of those settlement volumes at a similar deposit velocity, we believe the Bitcoin network would scale more than 7-fold from roughly $200 billion to $1.5 trillion in value,” the firm said after a detailed analysis.

In value settlement, Bitcoin is a well-established value network where transactions of billions happen on daily basis. According to a report, the total value of Bitcoin transactions counts almost $670 to $750 billion since 2017. It is estimated that the total value of Bitcoin and Ethereum transactions could reach $1.3 trillion in 2020.

Analysis, conducted by ARK invest, shows that Bitcoin behaves similarly to a stock having a large market cap. Currently, the trading volume of Bitcoin is more than Netflix and Google but less than Amazon and Facebook.

Bitcoin could exceed the US Bond Market in less than 4 Years

If Bitcoin becomes successful in gaining a 10% share of the global gold market, its market cap could reach above $1 trillion. Yassine Elmandjra, a crypto analyst at ARK Invest, believes that the daily volume of Bitcoin could take over the US equity market in less than 4 years and the US bond market in fewer than 5 years.

“At historical growth rates, bitcoin’s daily volume would exceed the volume of the US equity market in fewer than 4 years, and the volume of the US bond market in fewer than 5 years,” At historical growth rates, bitcoin’s daily volume would exceed the volume of the US equity market in fewer than 4 years, and the volume of the US bond market in fewer than 5 years,” Elmandjra said in a tweet.

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