Bitcoin reaching $1 million is possible, crypto expert says
Follow cryptocurrency long enough and you’re bound to encounter some admittedly outlandish forecasts. As the largest digital currency, bitcoin is often an epicenter for some wild.
Even though bitcoin went through a rough patch this year, losing roughly two-thirds of its value, it’s still easy to find price projections calling for massive appreciation. Some crypto market observers even believe that it is possible that bitcoin will one day trade for $1 million. That would represent a jump of about 59x from current levels.
Of course, time will tell if that forecast is accurate, but if it comes close to proving accurate, a number of assets beyond bitcoin could benefit. These include crypto-correlated exchange-traded funds such as Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) and Invesco Alerian Galaxy Crypto Economy ETF (SATO).
Jan3 CEO Samson Mow claimed that bitcoin could reach $1 million in the next five to 190 years, citing rising debt levels in major economies and the inability of some central banks to adequately manage inflation.
This scenario can “happen very quickly … It just happens overnight, and then you’re shoveling money into a wheelbarrow,” he said in an interview with Marco Oehrl of Investing.com.
Bitcoin and other digital assets received some much-needed relief on Tuesday as the November consumer price index (CPI) reading showed a decline to 7.1%. As evidence of the sensitivity of cryptoassets to positive inflation news, BLKC and SATO rose 0.93% and 1.06%, respectively, following the CPI report.
Easing inflation could prove crucial for bitcoin and ETFs like BLKC and SATO, because while the cryptocurrency was once seen as “digital gold,” its inflation-fighting reputation has rightly been called into question this year amid the aforementioned the price weakness.
In terms of bitcoin technicals, if it can continue to have an incremental upside, it could have upside to $18,533 before encountering another resistance area.
“The cryptocurrency broke through the support of the 23.6% Fibo retracement at $16,986 yesterday, while the daily low was formed at $16,878. However, the daily closing price was above the Fibo retracement, increasing the possibility of a recovery towards 38.2% Fibo retracement at $17,841. This resistance is reinforced by the 55-day MA at $17,993 and the immediate proximity to the psychological mark at $18,000,” according to Investing.com.
vettafi.com is owned by VettaFi, which also owns the index provider for BLKC and SATO. VettaFi is not a sponsor of BLKC and SATO, but VettaFi’s affiliate receives an index license fee from the ETF sponsor.
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