Bitcoin influencer and CEO of JAN3, Samson Mu, has recently made waves with his predictions about the future price of Bitcoin. He shared his bullish predictions for the price of Bitcoin in a recent post on social media site X (formerly Twitter).
According to Mo, Bitcoin is in a “sell” moment, telling people that prices below $100,000 are what smart investors want. “Any price below $0.1 million is still a sell bitcoin,” Mo was quoted as saying, suggesting that when Bitcoin hits that price, the sell will end.
Bitcoin price rise recently
On August 23, 2024, Bitcoin Bitcoin saw one of its biggest price increases, rising more than 6% from around $60,700 to around $64,450. This came after Federal Reserve Chairman Jerome Powell commented on interest rate cuts, which most investors viewed as a positive sign for the cryptocurrency market.
Any price below $0.1 million is still #Bitcoin For sale.
— Samson Mo (@Excellion) August 24, 2024
Amidst all the volatility in Bitcoin prices, It is set at $64,230, Bitcoin prices are still on the rise. This has not only led to a rise in Bitcoin prices, but also to the rise in altcoins, whose prices have also increased.
Mo’s predictions are based on recent structural changes in the Bitcoin market. He points to the approval of exchange-traded funds (ETFs) that have been accumulating Bitcoin intensively since their inception. These funds are said to be buying thousands of Bitcoins per day, creating a massive demand shock.
According to Mow, this, coupled with the supply shock from the recent halving event that lowered Bitcoin’s block reward, will be the perfect combination to trigger a massive price surge.
Bitcoin expected to reach $1 million
Mo is fairly candid about his long-term price predictions; he claims that Bitcoin could see million dollars in a yearIf not sooner. He believes that current market dynamics favor such a rally, with huge demand for Bitcoin versus a decreasing supply.
He expresses this confidence because he believes the market will absorb all Bitcoin sales regardless of volatility. He specifically emphasizes the fact that investors who understand money, live in inflationary environments, or come from oppressive regimes are more likely to view Bitcoin as a safe haven asset.
Image: Global Crypto
In this regard, the discussion of the Bitcoin price is not just a clear case of speculation, but rather directly related to the general economic conditions. The comments came at a time when many were already looking for alternative investment vehicles due to high inflation and general economic uncertainty.
Essentially, he stated that the unique properties of Bitcoin make it the preferred choice for those seeking to protect wealth from loss.
Veblen Effect and Market Psychology
One of the most interesting aspects of Mo’s analysis was his reference to the so-called Veblen effect Consumers tend to continue purchasing a product even if it becomes more expensive, partly due to perceived value.
This would be huge in the case of Bitcoin, Mo noted. As the price of Bitcoin rises, so does the number of investors who could be attracted to the digital asset not only because of the returns it can offer but also because of the value it holds.
These are the psychological drivers that can drive demand even higher, creating a self-reinforcing cycle of investment.
Featured image by Pexels, chart by TradingView