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River modeled Bitcoin prices ranging from $250,000 to $840,000 within three to five years.
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Siebert analyst Brian Vieten has a $175,000 12-month target.
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Meanwhile, Bloomberg’s Eric Balchunas says Bitcoin has recently been less correlated with US stocks.
A new Bitcoin price valuation model is drawing attention after mapping out a possible route to $840,000 within the next three to five years.
The estimate from Bitcoin financial services company River rests on investors gradually following Wall Street guidance to allocate between 1% and 7% of their portfolios to Bitcoin.
The model arrives as Siebert senior research analyst Brian Vieten argues Bitcoin’s June low marked the bottom and predicts a move to $175,000 over the next 12 months.
River Model Maps $840,000 Bitcoin Price
River’s analysis began with the claim that Bitcoin remains substantially under-owned despite growing mainstream acceptance.
The firm estimated that approximately 4% of people worldwide own Bitcoin.
It also said 29 of the 30 largest US-registered investment advisers now hold the asset, although their median allocation remains only 0.10%.
River argued that “increased demand for a fixed-supply asset can only be resolved in one way: through price.”
To assess this, the company modeled the amount of new capital entering Bitcoin and the effect each dollar of inflow would have on its total market capitalization.
Combining the two produced a projected market capitalization between $5.5 trillion and $17.5 trillion.
River said that range would translate into a price of approximately $250,000 to $840,000 per coin.
River cited a Bitwise survey showing that the share of financial advisers allocating to crypto rose from 22% in 2024 to 32% in 2022, while 56% planned to increase exposure.
Its model assumes that between 20% and 40% of investment portfolios eventually allocate 2% to 4% of their portfolios to Bitcoin.
Applied to an estimated $333 trillion pool of global financial assets, that would generate approximately $1.3 trillion to $5.3 trillion of net inflows over three to five years.
What Would Bitcoin Price Need to Do to Reach $840,000?
Bitcoin was trading near $77,700 at the time of writing, with a market capitalization of approximately $1.56 trillion
Reaching River’s lower $250,000 estimate would require the price to increase by approximately 222%, or more than triple.
The $840,000 upper estimate would demand a roughly 981% rally, taking Bitcoin to approximately 10.8 times its current price.
Source: finance.yahoo.com