Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin could reach $53.4 million by 2050, according to VanEck. VanEck said in a Jan. 8 post that in its bull case, Bitcoin captures 20% of international trade and 10% of domestic GDP, sending its value to $53.4 million by 2050 at a 29% compound annual growth rate. In this scenario, BTC would also have to equal or leapfrog gold as a reserve asset, comprising nearly 30% of global financial assets, the compa ...

Core Viewpoint - The precious metal market, particularly gold, experienced significant gains in 2025, with gold rising over 66% and reaching approximately $4,325 per ounce by year-end, marking the best percentage gain since 1979 [1][9]. Gold Market Insights - Bank of America forecasts gold prices to reach $5,000 per ounce, driven by continued central bank buying, rising U.S. fiscal deficits, and a weaker U.S. dollar, which fell over 6% in 2025 [2][3]. - The bullish sentiment in the gold market is supported by the absence of factors that typically end bull markets, according to Bank of America strategist Michael Widner [3]. Performance of Other Precious Metals - Silver also had a record year, gaining over 142%, while copper advanced by over 41%, marking the largest one-year gains since 2009 [8][9]. - Exchange-traded funds linked to these precious metals mirrored the gains seen in the underlying metals during 2025 [9]. Federal Reserve Actions - The Federal Reserve cut interest rates for the third consecutive time in December 2025, indicating a potential resumption of treasury buying, which may support the precious metals market [15][16]. - Reserve management purchases are expected to amount to $40 billion in the first month, with the potential for elevated levels to alleviate near-term pressures in money markets [15]. Market Sentiment - MacroMavens president Stephanie Pomboy expressed surprise at the rapid rise in precious metal prices but anticipates further increases, attributing this to a shift towards hard assets over paper assets [12].

Market Dynamics & Investment Flows - ETFs (Exchange Traded Funds) and BTC TCs (Bitcoin Trust Companies) have been key drivers in the current market cycle, but the structural demand from TCs is decreasing due to mNAV (market Net Asset Value) compression [1] - ETF flows are now a more significant factor in the market, while spot sovereign accumulation represents an unpredictable element [1] - After a weak start to September, ETFs turned bullish, aligning with previous tops and bottoms since their launch [1] Liquidity & Momentum - A 25% correction was anticipated following buying from the two cohorts at the new all-time high, which is normal for Bitcoin's volatility [2] - Liquidity remains supportive, but momentum is lacking, causing frustration for those seeking parabolic growth [2] - Global liquidity is growing slower than debt, but a cycle peak is not expected [2] - Bitcoin's gradual increase mirrors the slow growth in global liquidity [3] Future Outlook & Potential Risks - A dull cycle could lead to a shallow bear market drawdown but a prolonged decline [3] - Central banks reversing balance sheet tightening could trigger another upward movement, particularly in alternative cryptocurrencies (Alts), potentially leading to a peak and a deeper fall of potentially 50% [3] - Blockchain adoption and monetary debasement are considered strong secular trends [4] - Bitcoin is becoming global collateral, benefiting from AI technology, driving energy grid stabilization, and serving as an anchor asset for global portfolios [4]