Daniele Bernardi, the founder of Diaman and an experienced investor, accurately predicted the decline of Bitcoin in 2021 using his data-driven approach. Now, his analysis indicates that Bitcoin’s price is set to surge to $130,000 or potentially higher due to increasing demand. In any market, prices are determined by the intersection of supply and demand, whether it’s for fruits and vegetables or financial assets.
Bernardi draws a parallel between the behavior of mutual funds and the impact of limited supply on asset prices. With unlimited supply, the price of an asset remains unaffected by demand. However, when the available shares are limited, the price fluctuates according to the uneven balance between buyers and sellers.
To estimate the correct price of Bitcoin, Bernardi utilizes the transparency offered by the blockchain. By analyzing the number of Bitcoin addresses with non-zero balances, he can assess the average amount held in each wallet and derive the capitalization of Bitcoin. This approach allows him to establish a range within which the price of Bitcoin is expected to move.
Analyzing the growth curve of wallets in circulation, Bernardi predicts that Bitcoin’s price could reach its next peak in autumn 2025 at $130,000 or potentially higher. It should be noted that this forecast is not financial advice but rather an expected value based on assumptions with a certain degree of confidence. Nonetheless, similar price growth estimates have been made by other predictive models.
The recent interest shown by institutional players like BlackRock, who are seeking approval for a spot Bitcoin exchange-traded fund, suggests that there is some faith in these forecasting models. Their increased participation in the crypto asset class may further drive the demand for Bitcoin and contribute to its price appreciation.
It is important to emphasize that this article provides general information and should not be considered legal or investment advice. The views expressed by the author are based on his own analysis and do not necessarily reflect the views of Cointelegraph.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risks, and individuals should conduct their own research before making any investment decisions.