Bitcoin could reach $126,000 within three years if it grows at an average annual rate of 25%, according to analysts. Under that scenario, the cryptocurrency's total market capitalization would rise to approximately $2.5 trillion, they said.
The projection is based on analysts' notes that the asset has moved away from the explosive gains of its early years. The 5,429% annual increase seen in 2013 is unlikely to repeat, they said.
Institutional investors entering the market have made Bitcoin more mature and its price movements more balanced, analysts said. They added that Bitcoin's investment profile is becoming similar to that of high-growth tech companies.
Despite the maturation, Bitcoin's high volatility is expected to persist, with sharp rises and falls likely to continue. Analysts advise investors to consider sustainable growth scenarios rather than chase the extraordinary returns of the past.