Bitcoin (BTC) continues to dominate conversations in the financial world, having capitalized on the crisis in the United States banking system to reach a new multi-month high. The recent performance has prompted industry experts to offer projections on Bitcoin’s potential price action in the coming days.
One such projection was made by venture capitalist and former CTO at crypto exchange Coinbase, Balaji Srinivasan, in a tweet on March 18.
Balaji believes that Bitcoin will reach $1 million within 90 days due to the U.S. economy entering a phase of hyperinflation while warning that the world is likely to witness massive changes catalyzed by the devaluation of the dollar.
However, analyzing the viability of Balaji’s prediction, Matthew Kratter, founder of the Trader University YouTube channel, termed the forecast as “over the top” but “directionally correct,” as shared by MicroStrategy chair Michael Saylor in a tweet on March 24.
According to Kratter, while he views 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 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.
Drivers of Bitcoin to $1 million
Kratter suggested Bitcoin at $1 million remains in play, noting that the asset is increasingly becoming attractive as a safe haven due to its lack of counterparty and debasement risks, which are prevalent in other assets. He noted that all other assets, including cryptocurrency, technology stocks, bank stocks, stock indices, and gold, are rapidly losing value when measured against Bitcoin.
“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 pointed out that gold, another safe-haven asset, is losing market share to Bitcoin and is depreciating relative to the maiden crypto. In his view, gold has failed to provide the security that investors are seeking 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 coming success. Nevertheless, Kratter acknowledges that the current financial crisis and the Federal Reserve’s “turning the money printers back on” make Bitcoin an attractive option for investors.
While Kratter acknowledges that Bitcoin has limitations, such as its limited use as a form of payment and concerns about the security of exchanges and wallets, he predicts that the asset is likely to trade at $100,000 in the next three months and potentially hit $1 million by the end of the current decade.
Bitcoin price analysis
After weeks of rallying, Bitcoin is facing resistance at $30,000. By press time, BTC was trading at $27,628 with daily losses of almost 2%.
The current Bitcoin price follows an inflow of capital that elevated the asset’s market cap to hit $531.717 billion. In this line, Bitcoin is on the verge of reentering the top ten category of assets by market cap globally.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.