Samson Mow believes Bitcoin will surge to $1 million 'within days or weeks' once supply crunch hits – CryptoSlate

JAN3 CEO and Bitcoin bull Samson Mo believes Bitcoin could experience a significant supply shock within the next few days, potentially destabilizing Bitcoin supply. . Price soars to $1 million within “days or weeks.”

This forecast is contingent on demand from the recently approved Bitcoin ETF and recognition of the supply shock caused by the ongoing series of market corrections.

supply shock

The launch of Bitcoin ETFs has already attracted billions of dollars in trading volume. At the same time, BlackRock's acquisition of 11,500 BTC significantly reduced the available market supply during the first two days of trading.

This purchase is equivalent to purchasing 13 days worth of Bitcoin supply, which is currently around 900 BTC per day. Experts predict that demand for BTC will increase exponentially, especially if large inflows into ETFs continue.

Based on CryptoSlate's analysis of the available BTC supply, if financial institutions continued to buy BTC at similarly aggressive rates, it would only take around 120 days for the supply to dry up, making Bitcoin a historic Rare than ever before.

Adding further complexity to market dynamics is the upcoming Bitcoin halving. This is an event that historically has a large impact on the price by slowing down the creation rate of new he BTC. The reward for mining a new block will be halved from 6.25 BTC to 3.125 BTC in approximately 90-120 days.

This, combined with existing demand outstripping supply, could lead to unprecedented price increases as demand reaches record highs while supply falls to record lows.

Mo also commented on additional events that would occur if Bitcoin reaches the $1 million price range too quickly, including:

maximum pain theory

Moe said the market will likely “maximum pain theory” — an application of traditional financial markets, suggesting a scenario in which Bitcoin price fluctuations could result in the greatest financial loss to the greatest number of market participants.

This theory, although not formally defined in the cryptocurrency field, typically refers to the price level at which most option contracts expire worthless, resulting in significant losses for the holder. In the case of Bitcoin, this can lead to rapid and extreme price fluctuations that can catch many traders and investors off guard.

Mo believes one of the key aspects of this theory in the Bitcoin market is the possibility of a short squeeze occurring in the coming days. A short squeeze occurs when the price of Bitcoin unexpectedly spikes, forcing those who had bet on Bitcoin (short sellers) to buy it back at a higher price to limit their losses, causing the price to rise further. To do.

The concept of maximum pain is also tied to the unpredictability of Bitcoin price fluctuations and market sentiment. Bitcoin has a history of disappointing traditional market expectations, and the scenarios that cause the greatest economic pain to the greatest number of market participants are consistent with its volatile and unpredictable nature.

According to Moe, the rapid rise to $1 million will disrupt the strategic plans of many, including nation-states and businesses considering investing in Bitcoin. High fees could also impact the Lightning Network's usability and break down the stock-to-flow (S2F) model that many use to predict Bitcoin's value. .

One of the most significant impacts will be on the traditional financial system, which Mo believes is unprepared for the rapid restructuring around Bitcoin.