Samson Mow, a Bitcoin influencer and CEO of JAN3, recently made waves with his predictions about Bitcoin’s future price. He recently shared his forecast – optimistic about Bitcoin’s price trend – in a post on social media site X (formerly Twitter).

According to Mow, Bitcoin is currently in a “sell-off” moment, which tells people that smart investors want prices below $100,000. He quoted, “Any price below $0.1M, #Bitcoin is still in a sell-off,” implying that the sell-off will end when Bitcoin reaches that price.

The recent Bitcoin peak

On August 23, 2024, Bitcoin saw one of its biggest price surges when it rose over 6% from around $60,700 to about $64,450. This followed a comment by Federal Reserve Chairman Jerome Powell on interest rate cuts, which most investors viewed as a positive sign for the cryptocurrency market.

Any price below $0.1 million is still #Bitcoin on offer.

— Samson Mow (@Excellion) 24 August 2024

Amidst all the price fluctuations of Bitcoin, it was trading at $64,230 and continuing to rise sharply. This not only pushed up Bitcoin but also the altcoins, whose prices also shot up.

Mow’s predictions are based on recent structural changes in the Bitcoin market. He points to the approval of spot Bitcoin ETFs, which have been aggressively accumulating Bitcoins since their launch. These ETFs are reportedly buying thousands of Bitcoins every day, causing a huge demand shock.

According to Mow, this, combined with the supply shock caused by the recent halving event – ​​which saw a drop in Bitcoin’s block reward – creates the perfect mix to trigger a dramatic price increase.

Bitcoin Prediction for $1 Million

Mow is quite open about his long-term price predictions, claiming that Bitcoin could hit the $1 million mark within a year, if not sooner. His reasoning is that current market dynamics favor such a rise, as demand for Bitcoin is huge and supply is dwindling.

He expresses this confidence because he believes the market will absorb any Bitcoin sales, regardless of the fluctuations. He places particular emphasis on the fact that investors who understand money, live in an inflationary environment, or come from repressive regimes are likely to view Bitcoin as a safe haven.

Image: Global Crypto

In this context, the discussion about Bitcoin price is not just a clear case of speculation as it is directly related to the general economic conditions. Comments came at a time when many were already looking for alternative investment opportunities due to rising inflation and general economic uncertainty.

Essentially, he mentioned that Bitcoin’s unique properties make it the preferred choice for those who want to protect their wealth from loss.

The Veblen effect and the psychology of the market

One of the more interesting aspects of Mow’s analysis was his reference to the so-called “Veblen effect,” in which consumers tend to continue buying a product even when it becomes more expensive—partly because of perceived value.

Mow pointed out that this will be huge in the case of Bitcoin. As Bitcoin’s price rises, so does the number of investors who may be interested in the digital asset not only because of the return it can offer, but also because of its value.

These are psychological drivers that could further boost demand and trigger a self-reinforcing investment cycle.

Featured image by Pexels, chart by TradingView