In a recent research note, Blake Heimann, Senior Associate of Quantitative Research at WisdomTree, highlights the potential of bitcoin and gold as essential “hard money” assets that stand to gain from ongoing increases in the global money supply.
As economic uncertainty mounts, more investors are gravitating towards assets that can safeguard their purchasing power in light of escalating debt, inflation risks, and a decline in institutional trust.
Historically, gold has represented a stable store of value. However, many institutional investors are now beginning to regard bitcoin as a legitimate, decentralized alternative.
WisdomTree’s scenario-based projections suggest that under conditions of moderate inflation, consistent liquidity expansion, and modest real growth, bitcoin could potentially soar to $250,000, while gold might reach $4,000 per ounce by the year 2030.
The forecast presumes that bitcoin will continue to enhance its share within the total “hard money basket” alongside gold, fueled by growing investor confidence in decentralized financial solutions.
Models for Various Economic Scenarios
The report details three macroeconomic paths: deflationary, base case, and inflationary. In a deflationary scenario, characterized by regained fiscal discipline and slowed money supply growth, projections indicate that bitcoin could hit $120,000 by 2030 while gold might fall to $3,000.
Conversely, in an inflationary context marked by persistent inflation and waning confidence in fiat currencies, bitcoin is anticipated to skyrocket to $500,000 by 2030, potentially reaching $1.9 million by 2050. Gold may also experience significant gains, anticipated to rise to $5,500 in 2030 and $18,800 by mid-century.
The valuation model links the prices of bitcoin and gold to the anticipated scale of the global money supply, leveraging historical ratios between hard money asset values and the money supply to project future pricing. This, along with assumptions about bitcoin’s growing importance within this asset basket, aids in deriving long-term forecasts for both assets amid diverse economic regimes.
The Role of Bitcoin and Gold in Financial Diversification
Both assets, he asserts, are uniquely positioned to capture value as global financial systems adapt to ongoing liquidity concerns, increasing fiscal pressures, and a rising demand for decentralized alternatives to traditional fiat currencies.
While these projections do not guarantee future results, they indicate a growing belief that bitcoin has evolved beyond a mere speculative asset and is now considered a crucial element in contemporary hard money strategies.
Bitcoin Hits New All-Time High at $118K
Earlier today, bitcoin skyrocketed to a record peak above $118,600, driven by a surge in institutional demand, substantial ETF inflows, and renewed political momentum from the Trump administration.
This latest rally caught many traders by surprise, triggering a wave of liquidations not seen in years and signaling a decisive change in market momentum. The price surge reflects a bullish trend in market dynamics, as noted by 10X Research.
The post WisdomTree Forecasts Bitcoin at $250K and Gold at $4K by 2030 in Base Case Scenario appeared first on Finance Newso.
