Following Bitcoin’s surge past $52,000, analysts are optimistic about its potential to reach the ambitious target of $1,000,000. However, achieving this milestone is expected to be a complex journey, as outlined by a prominent crypto analyst.
Will Bitcoin Hit $1 Million?
Bitcoin HODL, a well-known crypto analyst, broke down the factors that could lead to a rally to $1 million. Based on the BofA Bull Market Multiple, reaching this target would entail a market cap of $21 trillion. This would require a capital injection of $178 billion or $353 million worth of buying per trading session for two years straight.
Bitcoin HODL’s analysis projects a growing multiple as more people hold onto Bitcoin. Factoring in recent net inflows and accounting for selling, an equilibrium price of $301,709 before halving and $603,418 after halving is projected. This would involve $350 million attempting to buy 585 to 1,170 Bitcoin tokens daily, representing just one demand vertical.
However, this possibility could be disrupted by rapid changes in market dynamics and inflows. Analysts believe that Bitcoin inflows could surge due to institutional investments via newly launched Spot ETFs. If the current Bitcoin ETF inflow frenzy continues, with over $400 million inflows daily, Bitcoin HODL’s analysis could hold true.
Meanwhile, Dutch Investor Marc van der Chijs predicts Bitcoin could surpass $69,000 and achieve a new all-time high before Halving. He conducted an in-depth analysis of post-ETF Bitcoin charts, identifying significant market inefficiencies tied to ETF inflows, resulting in a 2% daily price increase, roughly equating to $1000 per day.
Van der Chijs highlighted the current ratio of Spot Bitcoin ETF inflows to newly minted Bitcoin, estimated at 10-12 times, indicating continued demand-driven price hikes as investors seek to fulfill ETF orders. Coupled with the impending halving of BTC mining rewards in mid-April and the delayed ETF selling window for financial advisors, this supports his bullish outlook.
In conclusion, analysts foresee a potentially significant upward trajectory for Bitcoin, with forecasts ranging from $301K to $1 million, driven by factors such as increasing institutional investments and upcoming halving events.
According to Dutch Investor Marc van der Chijs, Bitcoin is poised for significant gains in the coming weeks, with the potential for even greater increases post-halving and advisor selling commencement.
Van der Chijs speculated that Bitcoin could experience an average daily increase of $1000 over the coming weeks, driven by market inefficiencies tied to ETF inflows. He noted that these inflows could result in a 2% daily price increase, translating roughly to $1000 per day.
Furthermore, Van der Chijs predicted that, barring unforeseen events, Bitcoin would reach a new all-time high surpassing $69,000 before the halving. He emphasized the potential for Bitcoin to soar to $100,000 within the next two to three months, buoyed by factors such as increasing institutional investments and upcoming halving events.
His analysis underscores the bullish sentiment surrounding Bitcoin’s future trajectory, fueled by growing investor confidence and favorable market conditions. If these predictions materialize, Bitcoin could enter into a new phase of significant price appreciation, solidifying its position as a leading asset in the digital economy.
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