Bitcoin price could surge to $500k, crypto millionaire predicts

Bitcoin price rebounded on Wednesday, ending a two-day decline that brought it close to the $90,000 level.

Bitcoin’s (BTC) recovery follows a major court victory for cryptocurrency mixer Tornado Cash. The three-judge panel said in its decision that it was wrong to approve the smart contract. Coinbase, the largest crypto exchange in the USA, was among the companies that supported the company.

Privacy wins. Today the Fifth Circuit held that @USTreasurySanctions against Tornado Cash smart contracts are illegal. This is a historic victory for cryptocurrencies and everyone who cares about defending freedom. @coinbase He is proud to lead this important fight. 1/6

— paulgrewal.eth (@iampaulgrewal) 26 November 2024

This victory means the crypto industry has made some regulatory gains in the US, which will lead to greater regulatory clarity. Moreover, there is a growing hope that the Donald Trump administration will be friendly to the crypto industry.

Meanwhile, crypto analysts believe that the recent pullback is just a pullback as the bullish outlook is still intact. In his X post, Charles Hoskinson, the crypto millionaire who founded Cardano, predicted that the cryptocurrency will rise to between $250,000 and $500,000 in the next 12 to 24 months.

His view is that more companies will begin moving some of their assets into Bitcoin, as MicroStrategy and El Salvador have done. Today, MicroStrategy owns $32 billion worth of BTC, while its market cap is over $70 billion.

If Bitcoin rises to $500,000 and its supply remains at its current 19.6 million, its market cap will be over $9.75 trillion. This would make it a larger entity than NVIDIA and Microsoft combined.

A major bullish case for Bitcoin is that it took more than 15 years to reach $100,000, meaning it will take a shorter time to reach $200,000. For example, the Dow Jones index reached $10,000 in 2010 and $20,000 in 2020. Then it took two years to reach $30,000, and less than two years to reach $40,000.

Bitcoin price cup and handle point to bounce to $122,000 BTC chart | Source: crypto.news

The weekly chart shows BTC price forming a cup and handle pattern with an upper end at around $68,800. The depth of this glass was approximately 78%. Therefore, measuring this distance from the top means that the cryptocurrency will rise to $122,000 in the near term.

What further supports the bullish case is that Bitcoin price is forming a golden cross chart pattern as the 200-day and 50-day moving averages cross each other. Historically it tends to make big moves after forming this cross.

The bullish view will be invalidated if the cryptocurrency falls below the handle’s bottom at $49,523.