Bitcoin Could Experience Outrageous Surge Soon According To Samson Mow

JAN3 CEO and Bitcoin enthusiast Samson Mow predicts an imminent substantial supply shock in Bitcoin, anticipating a potential surge to $1 million very soon. This projection relies on an anticipated supply shock resulting via the demand generated by recently sanctioned Bitcoin ETFs and ongoing market adjustments.

A Critical Few Months Ahead

Should institutions like BlackRock and MicroStrategy persist in acquiring BTC at a brisk pace, the supply could exhaust in approximately four months, rendering Bitcoin scarcer than ever before. Further complicating market dynamics is the impending Bitcoin Halving, an event historically influencing prices by reducing the rate of new BTC creation. The mining reward for new blocks is expected to be cut in half and be 3.125 BTC as compared to the current 6.25 BTC in roughly 90 to 120 days. This, combined with escalating demand and diminishing supply, might lead to an unparalleled price surge.

Mow subscribes to the Max Pain theory, an idea initially conceptualized by traditional financial markets, suggesting that price movements pertaining to BTC could result in maximum financial losses for a substantial number of market participants. In the crypto realm, this could manifest as abrupt and extreme price fluctuations, catching many traders and investors off guard.

Serious Consequences

Mow emphasizes the potential for a short squeeze in the near future, where an unexpected surge in the price of BTC compels short sellers to buy back at higher prices, further boosting the price. The concept aligns with the historical defiance of conventional market expectations shown by Bitcoin alongside its volatile nature.

According to Mow, a rapid ascent to $1 million would disrupt plans for nations and companies investing in Bitcoin, impact the usability of the Lightning Network due to high fees, and challenge the Stock-to-Flow (S2F) model used to predict the value of the flagship crypto.

He also outlines various consequences if Bitcoin were to quickly reach $1 million, including El Salvador missing the opportunity to issue Bitcoin bonds, major economists losing their jobs, Michael Saylor and MicroStrategy falling short of their supply acquisition goal, and a profound impact on the unprepared legacy financial system.