With Bitcoin (CRYPTO: BTC) soaring in price, analysts and traders are now ratcheting up their predictions for just how much higher this crypto could go. While some of these predictions sound like pie-in-the-sky wishful thinking -- such as claims that Bitcoin will skyrocket in value to $1 million in a matter of weeks -- there are actually some predictions that are much more grounded in reality.

Take, for example, the recent prediction from Fidelity Investments that Bitcoin could soon gain another $500 billion in market cap. Given Bitcoin's recent price of $50,000 and $1 trillion market cap, that would imply that Bitcoin could soon skyrocket in value to $75,000 and a $1.5 trillion market cap. That would be just enough to push Bitcoin past its all-time-high of $69,000. So is Fidelity right?

Fidelity Investments' valuation forecast is based primarily on a single observation: Bitcoin is increasingly taking over from gold as a store of value and a hedge against inflation for many investors. This makes sense on a certain level, given that Bitcoin has long been referred to as "digital gold." As a result, analysts have often used the size of the gold market as a reference frame for just how valuable Bitcoin might become in the future.

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Source Fool.com