Bitcoin's Future Valuation Discussed Amid Market Speculation

According to Odaily, Matthew Sigel, Head of Digital Asset Research at VanEck, recently commented on the ongoing market trends concerning perpetual futures contracts. Sigel noted that funding rates for these contracts have remained above 10% for over two months, which typically indicates excessive market speculation. He mentioned that this rate has recently surpassed 10%, but it has only been a few weeks since this change occurred. Sigel further explained that a relative unrealized profit level reaching 0.7 or higher suggests an impending market downturn. Currently, the level has reached 0.6. He stated that while forward returns are still quite favorable, reaching a 0.7 level might be closer to making the best judgment regarding Bitcoin price predictions. Sigel also shared his long-term forecast, predicting that Bitcoin's price could reach $3 million by 2050. He speculated that if former President Trump fulfills his promise to establish a national strategic reserve of Bitcoin, the price could rise even higher. In a hypothetical scenario where the United States purchases one million Bitcoins during a second Trump term and Bitcoin appreciates at an average annual rate of 25% until 2050, each Bitcoin could potentially be valued at $42 million. However, Sigel emphasized that such a growth rate is unlikely to be achieved. He believes that national adoption of Bitcoin is crucial for driving its valuation into the multi-million dollar range.