Flagship cryptocurrency Bitcoin, which has been struggling since the start of the year, is now believed to rally 10x. Chinese crypto whale Wei Zhao claimed that Bitcoin could surge to $500,000 by the end of this year.
He says several strong trends are now coming together that could increase demand for Bitcoin.
He cited multiple reasons why Bitcoin is going to hit $500K This year.
AI Could Create New Demand for Bitcoin
According to Wei Zhao, many big tech companies are now building AI systems that could use crypto. Instead of humans making most payments online, AI agents may soon send money to each other automatically.
Zhao said that AI agents cannot easily use traditional payment networks such as bank accounts or credit cards. Therefore, crypto wallets could become the default payment method for automated software.
Following the advancement into AI, Zhao believes crypto networks could become the main payment system for AI-to-AI transactions.
If billions of AI agents eventually require crypto wallets, demand for digital assets like Bitcoin and stablecoins could increase dramatically.
Coinbase, Circle Fueling the AI-Crypto Trend
Several recent developments support his view.
- The crypto exchange Coinbase recently launched wallets designed for AI agents rather than human users.
- Meanwhile, payments company Circle introduced extremely small transactions that allow machines to send payments as low as $0.000001.
Zhao says this type of technology could unlock billions of automated transactions between machines.
Even SpaceX reportedly holds hundreds of millions of dollars worth of Bitcoin, while xAI, the AI venture linked to Elon Musk, has been expanding rapidly and hiring blockchain specialists.
Zhao’s Timeline for Bitcoin Price to hit $500K
According to Zhao’s outlook, Bitcoin could first break $100,000 as infrastructure for AI agents grows. Later, if AI-driven activity expands quickly, institutional investors could start buying Bitcoin aggressively. If that demand arrives, Zhao believes Bitcoin could reach $500,000 by the end of the year.
Looking at the long-term Bitcoin chart, the price seems to be following a similar pattern seen in past cycles before big rallies. Bitcoin is moving inside a long upward channel that has guided its growth for years. In earlier cycles, similar patterns led to huge price jumps.
While the $500K target is still uncertain, Wei Zhao says the current setup looks similar to past moments when Bitcoin rose far beyond expectations.
For now, Bitcoin is trading near $71,000, far below that level.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Credit: Source link