ECB Stirs Crypto Debate: $10 Million Bitcoin Price Plausible, Yet Volatile

• The ECB criticized Bitcoin proponents for overstating its future market capitalization and focusing primarily on its investment potential rather than its functional role as an economic asset.
• Despite the ECB’s critical stance, prominent figures like Cathie Wood and Michael Saylor remain optimistic about Bitcoin’s long-term potential.

A recent prediction on Bitcoin (BTC) price from the European Central Bank (ECB) has stirred discussions across the crypto community. An ECB research paper, “The Distributional Consequences of Bitcoin,” references a potential $10 million target for BTC price. Bitcoin’s current price hovers between $50,000 and $60,000.

ECB’s Wild Bitcoin Price Prediction

However, the bank noted that any price, including $10 million per BTC, could be considered “equally plausible.” Nonetheless, the ECB also emphasized that no Bitcoin price holds any “particular economic justification or imputed basis.”

The central bank criticized BTC promoters for focusing on its potential as a high-return investment while neglecting its role as a functional economic asset. The ECB stated that Bitcoin advocates have significantly overestimated the flagship crypto’s future market capitalization, reported CNF. This statement has triggered debate among BTC supporters.

The bank pointed out the absurd comparison to the total value of gold and equity markets. For context, according to the International Capital Market Association, the global bond market alone is valued at approximately EUR 130 billion.

Amid the ECB’s warnings, some prominent figures have been vocal about Bitcoin’s long-term potential. For instance, Ark Invest’s Cathie Wood and MicroStrategy’s Michael Saylor have reaffirmed their projections of Bitcoin hitting $1 million by 2030. Their optimism stems from several factors, including the launch of spot Bitcoin ETFs and the growing institutional adoption of BTC, per the CNF report.

However, Tuur Demeester, a well-known analyst, raised concerns that the ECB’s critical stance might lead to tougher regulations. Moreover, it could even lead to a ban on Bitcoin within the European Union. In response to the report, Demeester highlighted that the negative view presented in the paper could serve as a justification for future restrictions.

Analysts’ Take on BTC Price

Amid this controversy, Bitcoin maximalist Max Keiser stood firm on his prediction that the BTC price surge to $220,000. Wall Street analysts have also weighed in, suggesting that Bitcoin could reach at least $100,000 during the current bull cycle, per the CNF report. Earlier, Robert Kiyosaki and Anthony Pompliano also offered a similar prediction.

At the time of writing, Bitcoin is trading at $68,335.12, losing 0.13% on Monday, October 21. On the contrary, the BTC trading volume has surged 96.33% to $27.01 billion in the past 24 hours. This surge is driven in part by the excitement around “Uptober.”

Meanwhile, crypto analyst Michael van de Poppe expressed optimism about Bitcoin. He commented, “I think we’re on the edge of making a new all-time high. Whether it’s this month or next month, I don’t know, but the bull market is here.” He further indicated that he would take advantage of any potential price dips to increase his position.

Amid the stagnant price action, a whopping $20.83 million shorts were liquidated in 24 hours, according to Coinglass. This suggests that short traders are buying back their BTC positions to reduce losses as the price remains stable. The short-term buying pressure could propel BTC price upwards, however, a pullback to follow as these traders dump holdings to bring the market down.