A new study predicts that Bitcoin could reach $1 million in 2027 as a result of the daily withdrawal from liquid supply exceeding 1,000 BTC.
This model is based on economic foundations and explains the setting where institutional accumulation increases and supply is contracted quickly.
The study, “Supply and Demand and Supply Framework for Bitcoin Price Forecast,” published in the Journal of Risk and Financial Management, uses a supply and demand equilibrium model built specifically from a fixed issuance schedule for Bitcoin. Unlike traditional commodities, Bitcoin is particularly vulnerable to supply shocks as it cannot increase production to meet the increase in demand.
“This parameterization suggests that Bitcoin will reach 1 million US dollars of all levels of Bitcoin per day by early 2027,” the study states.
The research paper, with the level of daily withdrawal from the circular supply exceeding 1,000 BTC, Bitcoin’s price trajectory will become hyperbolic and grow away from the adoption curve by 2028 (supply shortages tell a different story).
With a more aggressive daily withdrawal rate, forecasts predict that Bitcoin will reach $2 million by 2027 and $5 million by 2031.
The authors warned against excessive interpretations of predictions at the top, but agreed that the context mechanism would further examine Bitcoin’s emerging position as a strategic macroasset. As behavioral dynamics continue to move Bitcoin to long serial holders, the amount of withdrawal required for new demand becomes more price sensitive.
At the time of writing, Bitcoin is trading at around $84,523.85, with global cryptocurrency market capitalization of $2.64 trillion, according to Kraken’s price supply.