Which factors could push Bitcoin to the $1 million milestone?
Bitcoin (BTC) continues to make headlines in the fast-growing cryptocurrency world, with industry experts such as Samson Mou and Kathy Wood predicting a price increase of more than $1 million.
Their insights shed light on the dynamics driving Bitcoin's potentially exponential growth.
20X demand could push Bitcoin to $1 million.
Bitcoin maxi Samson Mou points to the role of Bitcoin Exchange Traded Funds (ETFs) in driving demand for BTC. He observed the aggressive buying of bitcoins by these ETFs.
The iShares Bitcoin ETF (IBIT) and Fidelity Advantage Bitcoin ETF (FBTC), two major ETFs, are buying large amounts of BTC every day. Their demand is far greater than the supply of bitcoins produced each day.
IBIT/FBTC intake is approximately 9000 BTC per day. Mining provides only 900 per day. So it's 10x supply from just 2 ETFs demand. Supply will be halved in less than 3 months, meaning this demand will be 20x supply. And this interest is only 2 ETFs. Don't forget that MicroStrategy (MSRR), Tether and many other corp are colluding with nation-states, HNWIs and plebs, according to Mou.
Read more: Bitcoin Half Cycles and Investment Strategies: What You Need to Know
ARK Invest's Kathy Wood stands firm on her $1 million Bitcoin prediction. Due to the recent economic crisis, she sees Bitcoin as a strong inflation hedge.
“The greater the uncertainty and volatility in global economies, the greater our confidence in Bitcoin.
One of the reasons is that we are at risk of inflation. We thought it was supply chain driven, and bitcoin is a hedge against inflation,” Wood said.
The current Bitcoin trend supports this optimism. The currency is on course for the fifth consecutive month of gains, posting a 3% gain in January 2024, not seen since the 2020-21 period.
Read more: Bitcoin price prediction for 2024/2025/2030
Including Bitcoin's increasing adoption by institutional investors, corporations, and even nation-states, Bitcoin's resilience and high growth is not only based on speculative demand, but also supported by actual market dynamics. Indeed, with limited supply and increasing acceptance, experts believe that the future of Bitcoin is bright.
As the digital asset landscape matures, Bitcoin stands at the forefront, demonstrating the benefits of leverage and the transformation of resource storage and value transfer.
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