{"id":12597,"date":"2024-01-15T11:48:15","date_gmt":"2024-01-15T08:48:15","guid":{"rendered":"https:\/\/blog.egemoney.com\/?p=12597"},"modified":"2024-01-15T12:00:17","modified_gmt":"2024-01-15T09:00:17","slug":"samson-mow-predicts-bitcoin-could-reach-1-million-due-to-supply-shortage","status":"publish","type":"post","link":"https:\/\/blog.egemoney.com\/en\/samson-mow-predicts-bitcoin-could-reach-1-million-due-to-supply-shortage\/","title":{"rendered":"Samson Mow Predicts Bitcoin Could Reach $1 Million Due to Supply Shortage"},"content":{"rendered":"

This forecast is based on the demand resulting from newly approved Bitcoin ETFs<\/strong> and the anticipated supply contraction due to the upcoming halving event.<\/p><\/blockquote>\n

Samson Mow, CEO of JAN3 company and a Bitcoin<\/strong> proponent, argues<\/a> that Bitcoin<\/a> will soon experience a major supply bottleneck and, as a result, its value is likely to surge to 1 million dollars ‘in a matter of days or weeks’.<\/p>\n

This prediction is linked to the expected supply shortage caused by the recently approved Bitcoin ETFs and the ongoing market regulations.<\/p>\n

Bitcoin Supply Reduction<\/h2>\n

With the introduction of Bitcoin ETFs<\/strong> to the market, the trading volume has already reached billions of dollars. Additionally, BlackRock’s purchase of 11,500 BTC<\/strong> in the first two days of trading significantly reduced the market supply.<\/p>\n

This purchase equates to 13 days of the current daily Bitcoin<\/strong> supply, which is around 900 BTC<\/strong>. Analysts predict that if ETFs continue to attract large amounts of money, BTC<\/strong> demand will rapidly increase.<\/p>\n

Some analysis suggests that if institutions continue to buy BTC<\/strong> at this rate, the existing supply could be exhausted in approximately 120 days. This could make Bitcoin<\/strong> the rarest it has ever been.<\/p>\n

An impending event like Bitcoin halving<\/a>, historically has a significant impact on the price and reduces the rate of new BTC<\/strong> production. With this event, the mining<\/a> reward will drop from 6.25 BTC<\/strong> to 3.125 BTC in about 90 to 120 days.<\/p>\n

In the event that the current demand exceeds the supply, reaching new heights in demand and the lowest level in supply history could lead to an unprecedented price surge.<\/p>\n

Bitcoin Price Theory<\/h2>\n

Mow believes that markets generally follow the “Max Pain Theory<\/a>“. This theory suggests that Bitcoin<\/strong>‘s price movements will create a scenario that causes the most financial loss to the majority of market participants.<\/p>\n

This unofficially defined theory in the crypto world usually refers to the price level at which the most option contracts expire worthless, causing significant losses to their holders. For Bitcoin<\/strong>, this could lead to sudden and severe price fluctuations that could catch many buyers and investors off guard.<\/p>\n

Mow highlights the possibility of a short squeeze in the Bitcoin<\/strong> market as a significant element of this theory. A short squeeze occurs when the price of Bitcoin<\/strong> unexpectedly rises, forcing those betting against it (short sellers) to buy at higher prices to limit their losses, further driving up the price.<\/p>\n

According to Mow, a rapid rise in Bitcoin<\/strong>‘s price to 1 million dollars could upend the strategies of many nation-states and corporations planning to invest in Bitcoin<\/strong>. It could also limit the usability of the Lightning Network due to high transaction fees and invalidate the Stock-to-Flow model often used to predict Bitcoin<\/strong>‘s value.<\/p>\n

Other potential effects of Bitcoin<\/strong>‘s price reaching 1 million dollars rapidly, according to Mow, include:<\/p>\n