Bitcoin price will reach $1 million within 90 days due to U.S. economy entering hyperinflation
Bitcoin price continues to dominate financial talks, having taken advantage of the banking sector crisis in the United States to hit a new multi-month high. The recent performance has encouraged industry analysts to forecast Bitcoin’s price movement in the next few days.
Balaji Srinivasan, a venture capitalist and former CTO at crypto exchange Coinbase made one such prediction in a tweet on March 18. He predicts Bitcoin will hit $1 million within 90 days as the US economy enters a period of hyperinflation but warns that the globe is likely to witness enormous upheavals due to the dollar’s depreciation.
Yes. Just moving money for the bet. We can do it via smart contract, but for simplicity old-fashioned escrow may work.
The escrow person would need one BTC address and one ETH address (for the USDC). The assets would sit on chain for 90 days.
If BTC < $1M in 90 days after…
— Balaji (@balajis) March 18, 2023
In assessing the validity of Balaji’s statement, Matthew Kratter, founder of the Trader University YouTube channel, described it as “over the top” but “directionally true,” as MicroStrategy chair Michael Saylor noted in a tweet on March 24.
While Kratter believes Balaji’s estimate is a marketing gimmick, he believes the possibility of Bitcoin reaching $1 million in three months is 1-2%. Still, the asset can reach such heights in the long term. “I think he is right about Bitcoin going to a million dollars. I’ve talked about Bitcoin going to $5 million or $10 million per coin, just probably not in the next 90 days. I think this is a bit of a marketing ploy. If Bitcoin were to move to $1 million per coin in the next 90 days, I think that would be a terrible thing. It would actually be a sign that something major is broken,” he said.
Kratter indicated that Bitcoin at $1 million remained viable, noting that the currency is becoming appealing as a safe haven due to its absence of counterparty and debasement concerns common in other assets. Unlike Bitcoin, all other assets, including cryptocurrencies, technology stocks, bank stocks, stock indices, and gold, rapidly lose value.
“What we’re seeing is everything is crashing against Bitcoin this is another way of saying that people are fleeing into Bitcoin. <…> The entire financial system is unraveling, and savings and capital are being moved into Bitcoin. <…> It’s actually beginning to look like the Bitcoin network can’t be stopped even during the financial crisis,” Kratter added.
Furthermore, the author stated that gold, another safe-haven asset, is losing market share to Bitcoin and is depreciating compared to the first cryptocurrency. Gold, in his opinion, has failed to deliver the security investors are looking for during this crisis.
Curiously, Kratter believes Balaji’s prediction may be an attempt to boost his profile by associating himself with Bitcoin’s future success. Yet, Kratter concedes that the present financial crisis and the Federal Reserve’s “reactivation of the money printers” make Bitcoin an appealing alternative for investors.
While Kratter agrees that Bitcoin has limits, including as its limited usage as a form of payment and security worries concerning exchanges and wallets, he forecasts that the asset will trade at $100,000 in the next three months and might reach $1 million by the end of the current decade.
Bitcoin is experiencing resistance at $30,000 after weeks of surging. BTC was trading at $27,750 as of press time, down over 2% daily.
BTC/USD 4-hour chart | Source: TradingView
The current Bitcoin price results from capital inflows that have increased the asset’s market cap to $531.717 billion. In this regard, Bitcoin is on the verge of reentering the top 10 asset class by market capitalization worldwide.
Read more:
- CryptoQuant Data Points To Resistance At $29,000-$30,000 Level For Bitcoin
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