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- Samson Mow forecasted a potential surge of around 1,264% from the current level over the coming months, anticipating a milestone of $1 million per Bitcoin either this year or the next.
- Mow attributes Bitcoin’s potential rally to various factors, including the ongoing imbalance between demand and supply, upcoming halving events, and the significant influx in Bitcoin ETFs.
Samson Mow, CEO of JAN3, a Bitcoin-focused tech company, is optimistic about Bitcoin’s future, predicting that the cryptocurrency could surge to a seven-figure price. Speaking on the What Bitcoin Did podcast, Mow forecasted a potential increase of approximately 1,264% from the current level over the next few months.
“I believe we’re on track to hit $1 million this year… if not this year, then next year. But it’s imminent,” Mow asserted. As of the press time, the Bitcoin price is trading at $72,842 with a market cap of $1.430 trillion.
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Mow further added that the existing market conditions confirm his bullish thesis on Bitcoin. He noted:
“The whole setup we have right now is perfect for a run-up. You have demand far outstripping supply. And supply is about to be cut. You know halving is in a month. The [spot Bitcoin]exchange-traded funds (ETFs) alone are pulling in about 22,000 BTC… So demand is like 10x. Now it’s going to 20x, so the price should react accordingly.”
Mow suggests that the Veblen Effect, which posits that as the price of a commodity rises, so does the demand due to its perceived value, could contribute to Bitcoin’s appreciation.
Even if that scenario doesn’t unfold, you have the Veblen Effect… as Bitcoin becomes more valuable, its desirability increases simply because of its value. There’s a tipping point, perhaps when it reaches parity with the gold market cap, which is around $450,000 to $500,000 per coin, he explained.
Bitcoin surpassing Gold
Mow also explained that once Bitcoin surpasses this Veblen threshold, it begins to overshadow gold as the preferred store of value. It essentially becomes the new gold.
This pivotal moment would mark the transition from gold to Bitcoin as the dominant asset. Once Bitcoin surpasses gold, it’s expected to draw investments away from gold and into Bitcoin, explains Mow.
As reported by Crypto News Flash, the new all-time highs for Bitcoin come amid the massive inflows taking place in Bitcoin ETFs. Within two months of launch, the total assets under management of all nine Bitcoin ETFs combined have crossed $10 billion. Market analysts have been predicting that if the inflows continue at this rate, it will be not long for the Bitcoin ETFs to overtake the Gold ETFs.
According to a research report by broker JMP Securities, spot bitcoin (BTC) exchange-traded funds (ETFs) could attract inflows totaling $220 billion within the next three years. This influx of capital could potentially quadruple BTC’s price to $280,000, considering the multiplier effect on new investments.
Despite spot bitcoin ETFs exceeding initial expectations by reaching $10 billion in inflows just two months post-launch, JMP Securities suggests that this is merely the beginning. The report indicates that the current activity and inflows represent only a fraction of the potential, emphasizing that the approval of ETFs marks the start of a more extensive process of capital allocation.
