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Samson Mow, a Bitcoin influencer and the CEO of JAN3, recently made waves with his predictions on the future price of Bitcoin. He shared his outlookᅳbullish for the price trajectory of Bitcoinᅳin a post on the social media site X (formerly Twitter) recently.
According to Mow, Bitcoin is at its “sale” moment, telling people that prices below $100,000 are what smart investors want. He quoted, “Any price below $0.1M is still #Bitcoin on sale,” insinuating that when Bitcoin reaches this price, the sale will then come to an end.
Bitcoin’s Recent Spike
On August 23, 2024, Bitcoin saw one of its largest price surges, as it gained over 6% from around $60,700 to approximately $64,450. It followed after a comment by Federal Reserve Chair Jerome Powell on interest rate cuts, most of which investors were taking as a positive sign for the cryptocurrency market.
Any price under $0.1M is still #Bitcoin on sale.
— Samson Mow (@Excellion) August 24, 2024
Amidst all the price fluctuation of Bitcoin, it rested at $64,230, still radically going up. This did not only push Bitcoin but also the altcoins up, whose prices leaped up too.
Mow’s predictions are pegged on the recent structural changes in the Bitcoin market. He points to the approval of spot Bitcoin ETFs, which have been aggressively accumulating Bitcoin since creation. These ETFs are said to be purchasing thousands of Bitcoins daily, thus creating a huge demand shock.
According to Mow, this coupled with the supply shock that resulted from the recent halving eventᅳwhich brought a drop in the Bitcoin block rewardᅳwill make for a perfect mix to catalyze a dramatic price increase.
$1 Million Bitcoin Prediction
Mow is rather vocal about his long-term price predictions; he claims that Bitcoin may see $1 million within a year, if not sooner. His reasoning is that the current market dynamics favor such a rise, with huge demand for Bitcoin against a dwindling supply.
He expresses that confidence because he believes the market will absorb all sales of Bitcoin no matter the fluctuation. He places special emphasis on the fact that investors who understand money, live in inflationary environments, or come from oppressive regimes are likely to see Bitcoin as a safe haven asset.
Image: Global Crypto
In relation to this, the discussion of the Bitcoin price is not just a clear-cut case of speculation, as it relates directly to general economic conditions. Comments have come at a time when many were already eyeing alternative investment vehicles due to rising inflation and general economic uncertainty.
Basically, he mentioned that the unique properties of Bitcoin set it as a preferred choice for those seeking to protect wealth from losses.
The Veblen Effect And The Psychology Of The Market
One of the more intriguing aspects of Mow’s analysis was his reference to what is called the “Veblen Effect,” where consumers tend to keep buying a product even as it gets more expensiveᅳpartly because of perceived value.
Mow pointed out that this is going to be huge in the case of Bitcoin. As the price of Bitcoin increases, so are more and more investors who can be potentially attracted to the digital asset not only by the return it can give but also by the value it holds.
These are psychological drivers that might fuel demand even further, giving rise to a self-reinforcing cycle of investment.
Featured image from Pexels, chart from TradingView
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