Bitcoin Price To Reach $1 Million: Analyst Breaks Down the Factors
After Bitcoin (BTC) surpassed $52,000, there is growing optimism among analysts that BTC could reach the ambitious target of $1,000,000. However, achieving this milestone wonโt be easy. A crypto analyst has provided a breakdown of the factors that could contribute to a rally towards $1 million.
The Path to $1 Million
Before discussing the factors that could drive Bitcoinโs price to $1 million, the analyst notes that reaching this level would require a market cap of $21 trillion based on the BofA Bull Market Multiple. To achieve this, a capital injection of just $178 billion or $353 million worth of buying per trading session for two years straight would be needed.
Considering recent net inflows and accounting for selling, the analyst projects an equilibrium price of $301,709 before the halving and $603,418 after the halving. This would mean approximately $350 million attempting to buy 585 to 1,170 Bitcoin tokens daily.
The Impact of ETFs on Bitcoin Price
Another analyst suggests that Bitcoin could surge past $69,000 and reach a new all-time high before the halving. This prediction is based on an analysis of post-ETF Bitcoin charts. The analyst observes a significant market inefficiency tied to ETF inflows, resulting in a 2% daily price increase or roughly $1000 per day.
The surge in price primarily occurs during the settlement period before the US market opens. The analyst also highlights the current ratio of Spot Bitcoin ETF inflows to newly minted Bitcoin, estimated at 10-12 times. Continued demand-driven price hikes are expected as investors fulfill ETF orders.
The analyst predicts an average daily increase of $1000 in the coming weeks and the potential for even greater gains after the halving. They anticipate a new all-time high surpassing $69,000 before the halving, with the possibility of reaching $100,000 within the next two to three months.
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