After Bitcoin (BTC) surpassed the $52,000, analysts have expressed optimism for BTC price achieving the ambitious target of $1,000,000. However, the journey wouldn’t be simple and a crypto analyst provided a breakdown of the factors that could lead to a rally of $1 million.
Will Bitcoin Touch $1 Million?
Before pointing out the reasons that could propel Bitcoin price rally to $1 million, Bitcoin HODL, a prominent crypto analyst on X, noted that the path to a $1 million Bitcoin involves a $21 trillion market cap, based on the BofA Bull Market Multiple. Thereafter, he explained that it would necessitate a capital injection of just $178 billion or $353 million worth of buying per trading session for two years straight.
The analysis assumes a growing multiple as more people HODL 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 by Bitcoin HODL. This would entail $350 million attempting to buy 585 to 1,170 Bitcoin tokens daily, representing just one demand vertical.
However, the market dynamics and a rapid change in inflows could disrupt this possibility. Whilst, crypto analysts believe the Bitcoin inflows could surge due to institutional investments via the newly launched Spot ETFs. Hence, Bitcoin HODL’s analysis could hold true if the current Bitcoin ETF inflow frenzy continues as recently, it has been clocking over $400 million inflows every day.
Also Read: BlackRock Now Holds $6 Billion BTC As Bitcoin ETF Notes $477 Mln Net Inflow
A Close Look At ETF Impact On Bitcoin Price
On the other hand, Dutch Investor Marc van der Chijs, took to X and noted that Bitcoin could surge past $69,000 and hit a new all-time high before Halving. The analyst conducted an in-depth analysis of post-ETF Bitcoin charts, leading to intriguing price predictions for the next three months. He noted a significant market inefficiency tied to ETF inflows, resulting in a 2% daily price increase, roughly equating to $1000 per day.
This surge primarily occurs during the settlement period preceding US market opening. Moreover, Van der Chijs suggested potential trading opportunities based on this pattern but emphasizes his focus beyond day trading.
In addition, he highlighted the current ratio of Spot Bitcoin ETF inflows to newly minted Bitcoin, which is estimated at 10-12 times. Moreover, the analyst anticipates continued demand-driven price hikes as investors seek to fulfill ETF orders. This, coupled with the impending halving of BTC mining rewards in mid-April and the delayed ETF selling window for financial advisors, further supports his bullish outlook.
Van der Chijs speculated an average daily increase of $1000 over the coming weeks, with potential for even greater gains post-halving and advisor selling commencement. Furthermore, barring unforeseen events, he predicted a new all-time high surpassing $69,000 before the halving, potentially soaring to $100,000 within the next two to three months.
Also Read: 5 Crypto To Buy Before The Next Bitcoin Halving In 2024