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Samson Mow, the CEO of JAN3, a tech firm focused on Bitcoin, has made a bold prediction regarding the future price of the cryptocurrency.
Speaking on the What Bitcoin Did podcast, Mow suggested that Bitcoin (BTC) could potentially reach a seven-figure price within the next few months, representing a staggering increase of approximately 1,264% from its current level.
Bullish Market Conditions Support Forecast
At the time of his statement, Bitcoin was trading at $73,340. Mow attributed his bullish outlook to the prevailing market conditions, emphasizing the imbalance between demand and supply. He pointed out that demand for Bitcoin significantly exceeds its supply, which is poised to intensify further with the upcoming halving event.
Mow highlighted the impact of spot Bitcoin exchange-traded funds (ETFs) in amplifying demand, with approximately 22,000 BTC being pulled into these funds. He suggested that the increasing demand, expected to reach up to 20 times the current level, would naturally drive the price of Bitcoin higher in response.
Moreover, Mow referenced the Veblen Effect, which posits that as the price of a commodity rises, so does the demand for it. He suggested that this phenomenon could contribute to Bitcoin's appreciation, particularly as it approaches parity with the market cap of gold, estimated to be around $450,000 to $500,000 per coin.
Bitcoin as the New Gold
Drawing parallels between Bitcoin and gold, Mow argued that once Bitcoin surpasses this critical threshold, it would replace gold as a store of value.
According to Daily Hodl, as Bitcoin gains recognition as the "new gold," Mow speculated that investors would increasingly reallocate their assets from traditional gold holdings to Bitcoin. He anticipated a shift in media narratives, further solidifying Bitcoin's status as the superior store of value.
Based on a Coin Telegraph report, Bitcoin ETFs have now exceeded the size of S&P 500 Industrial ETFs. However, they still lag behind the assets under management of S&P 500 Low Volatility sector ETFs and are considerably distant from the trillions of dollars managed in gold ETFs. Currently, Bitcoin is trading at an all-time high price of $72,721.
Mow's optimistic forecast for Bitcoin's price hinges on a combination of factors, including supply dynamics, increasing demand driven by ETFs, and psychological effects such as the Veblen Effect. If his predictions materialize, Bitcoin could see a monumental rise in value, potentially reaching the elusive seven-figure mark in the near future.
Photo: Giorgio Trovato/Unsplash
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