Samson Mow, a Bitcoin influencer and the CEO of JAN3, recently made waves with his predictions about the future price of Bitcoin. He shared his ᅳbullish outlook for Bitcoin’s price movementᅳin a post on the social media site X (formerly Twitter) recently.
According to Mow, Bitcoin is in its “sell” moment, telling people that prices below $100,000 are what smart investors want. He quoted, “Any price below $0.1 million is still #Bitcoin on sale,” implying that when Bitcoin reaches this price, the selloff will end.
Bitcoin’s Recent Spike
On August 23, 2024, Bitcoin saw one of the biggest price increases as it rose more than 6% from around $60,700 to around $64,450. It followed a comment from Federal Reserve Chairman Jerome Powell about rate cuts, which most investors saw as a positive sign for the cryptocurrency market.
Any prize below $0.1 million is still #Bitcoin for sale.
— Samson Mow (@Excellion) August 24, 2024
Amidst all the Bitcoin price fluctuations, rested at $64,230, still radically up. This not only pushed Bitcoin up, but also the altcoins, whose prices also jumped.
Mow’s predictions are based on recent structural changes in the Bitcoin market. He points to the adoption of spot Bitcoin ETFs, which have been aggressively accumulating Bitcoin since their inception. These ETFs are said to be buying thousands of Bitcoins daily, creating a huge demand shock.
According to Mow, this, combined with the supply shock resulting from the recent halving (which saw a drop in the Bitcoin block reward), is the perfect mix to trigger a dramatic price increase.
$1 Million Bitcoin Prediction
Mow has been quite vocal about his long-term price predictions, claiming that Bitcoin may see an uptick $1 million in one yearif not sooner. His reasoning is that current market dynamics favor such a rise, with huge demand for Bitcoin against a dwindling supply.
He expresses that confidence because he believes that the market will absorb all Bitcoin sales, regardless of the fluctuations. He places special emphasis on the fact that investors who are knowledgeable about money, live in an inflationary environment, or come from oppressive regimes are likely to view Bitcoin as a safe haven.
Image: Global Crypto
In this context, the Bitcoin price discussion is not just a clear case of speculation, as it is directly related to general economic conditions. Comments came at a time when many were already eyeing alternative investment vehicles due to rising inflation and general economic uncertainty.
In essence, he indicated that Bitcoin’s unique properties make it a popular choice for people looking to protect their wealth from loss.
The Veblen Effect and Market Psychology
One of the most intriguing aspects of Mow’s analysis was his reference to what the “Veblen effect,” where consumers tend to continue buying a product even if it becomes more expensive. This is partly due to perceived value.
Mow pointed out that this will be huge in the case of Bitcoin. As the price of Bitcoin rises, so do more investors who may be attracted to the digital asset not just for the returns it can provide, but also for the value it holds.
These are psychological factors that can further fuel demand, creating a self-reinforcing investment cycle.
Main image from Pexels, chart from TradingView