This is why rising demand for Bitcoin could fuel a 6,300% bull rally.

With increasing institutional interest and technological advancements paving the way, demand for Bitcoin is unprecedented.

This increased demand and limited supply could fuel a 6,300% price rally over the next 15 years.

Institutional demand for BTC is growing

The simple but profound principle of supply and demand is at the heart of this forecast. Bitcoin architecture ensures that only 21 million BTC will be produced. Today, 93.5% of these have been excavated. This scarcity is a key driver behind Bitcoin's value proposition.

Michael Saylor, CEO and founder of MicroStrategy, emphasized that by 2035, mines will produce 99% of Bitcoin mining. This could usher in a new era of growth fueled by scarcity, creating a “Bitcoin Gold Rush.” A new phase of high-growth institutional adoption is fueled by the advent of Bitcoin exchange-traded funds (ETFs).

“I think we're in the midst of a bitcoin gold rush. It started in January 2024 and will last until November 2034… You will see resistance falling. There will be a day when bitcoin surpasses gold [and] Trade more than an S&P index ETF,” Salor said.

Read more: How to trade Bitcoin ETF: A step-by-step approach

The focus on Bitcoin ETFs, especially BlackRock's iShares Bitcoin Trust, which has crossed $10 billion in assets under management in record time, is the stark contrast to the trajectory of traditional gold ETFs, accelerating the momentum behind Bitcoin.

The boom has moved into Bitcoin ETFs, undercutting gold funds, further evidence of this institutional fervor and a shift in the store-of-value paradigm. Reflexivity Research co-founder Will Clemente highlighted the unprecedented pace of flows, suggesting a tectonic shift in investor preference from gold to Bitcoin.

“Bitcoin ETF earnings absolutely blow gold out of the water. Even close, completely numb, damaged,” Clement emphasized.

Institutions and banks, spurred by pressure from their big clients, are opening a wide institutional gateway to the cryptocurrency market and are now accepting Bitcoin transactions.

How can the price of Bitcoin increase by 6,300%?

Beyond institutional adoption and technological optimization, the theoretical underpinning of Bitcoin's potential price trajectory rests on Giovanni Santostasi's “power law” model. This model predicts a Bitcoin bull rally of around $10 million by 2045, taking into account natural phenomena.

Unlike traditional linear models that often show a chaotic view of Bitcoin price action, a power law model provides a logarithmic view. Therefore, it suggests a more predictable and orderly growth pattern.

“The line chart you often see on TV – what [Jim] Kramer is talking about it – it looks messy. When you log the y-axis, and when you start to see some regularity there, it doesn't look so messy, it looks like a pretty pattern. “But the human eye can't look at the curve and say, ‘It's a power law,'” Santostasi explained.

Read more: Bitcoin price prediction for 2024/2025/2030

Despite the optimism surrounding the power law model, it is important to acknowledge the inherent volatility of the cryptocurrency market. Critics of mathematical models in finance caution against overreliance on these predictions. They emphasize that the unpredictability of markets and external events can disrupt even the strongest predictions.

While the journey to the 6,300% bull rally is uncertain, the laws of supply and demand position Bitcoin as a transformative force in the financial system.