Can Bitcoin Reach $1 Million In 90 Days? Expert analyzes Balaji’s forecast

Bitcoin (BTC) continues to dominate conversations in the financial world, having taken advantage of the crisis in the US banking system to reach a new multi-month high. The recent performance has prompted industry experts to speculate on Bitcoin’s potential price action in the coming days.

Such a forecast was made by venture capitalist and former CTO of the crypto exchange Coinbase, Balaji Srinivasan, in a chirping on March 18.

Balaji believes that Bitcoin will reach $1 million within 90 days due to the US economy entering a phase of hyperinflation, while he warns that the world is likely to witness massive changes catalyzed by the devaluation of the dollar.

But analyzing the viability of Balaji’s prediction, Matthew Kratter, founder of Trader University YouTube channel, called the forecast “over the top” but “directionally correct,” as shared by MicroStrategy CEO Michael Saylor in a chirping on March 24.

According to Kratter, while viewing Balaji’s forecast as a marketing ploy, the probability of Bitcoin hitting $1 million in three months is 1-2%, but the asset has the potential to reach such price levels in the long term.

“I think he’s right about Bitcoin going to a million dollars. I’ve talked about Bitcoin going to $5 million or $10 million per coin, but 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 big is broken,” he said.

Drivers of Bitcoin to $1 million

Kratter suggested that Bitcoin at $1 million is still in play, noting that the asset is becoming increasingly attractive as a safe haven due to its lack of counterparty and downside risks, which are prevalent in other assets. He noted that all other assets, including cryptocurrency, technology stocks, banking stocks, stock indices and gold, are rapidly losing value when measured against Bitcoin.

“What we’re seeing is everything crashing against Bitcoin. This is another way of saying people are fleeing into Bitcoin. <…> The entire financial system is unraveling, and savings and capital are being moved into Bitcoin. <...> Indeed, it’s starting to look like the Bitcoin network can’t be stopped even during the financial crisis, Kratter added.

Furthermore, the author pointed out that gold, another safe haven, is losing market share to Bitcoin and falling relative to the virgin crypto. In his view, gold has failed to provide the security that investors seek during this crisis.

Interestingly, Kratter believes that Balaji’s forecast may be an attempt to bolster his personal reputation by aligning himself with Bitcoin’s upcoming success. Nevertheless, Kratter acknowledges that the current financial crisis and the Federal Reserve’s “turning on the money printers again” make Bitcoin an attractive option for investors.

While Kratter acknowledges that Bitcoin has limitations, such as limited use as a form of payment and concerns about the security of exchanges and wallets, he predicts that the asset will likely trade at $100,000 within the next three months and potentially reach $1 million by the end of current decade.

Bitcoin price analysis

After weeks of rallying, Bitcoin faces resistance at $30,000. At press time, BTC was trading at $27,628 with daily losses of nearly 2%.

The current Bitcoin price follows an influx of capital that boosted the asset’s market value to reach $531.717 billion. Along these lines, Bitcoin is on the verge of entering the top ten category of assets by market capitalization globally.

Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.