After Bitcoin (BTC) crossed the $52,000 mark, analysts expressed optimism that the BTC price will reach the ambitious target of $1,000,000. However, the journey wouldn't be easy and a crypto analyst provided a breakdown of the factors that could lead to a $1 million rally.
Will Bitcoin Reach $1 Million?
Before Bitcoin HODL, a well-known crypto analyst on Afterwards, he explained that it would require a capital injection of just $178 billion, or $353 million in purchases per trading session for two years in a row.
The analysis assumes a growing multiple as more and more people HODL Bitcoin. Taking into account recent net inflows and accounting for sales, Bitcoin HODL predicts an equilibrium price of $301,709 before the halving and $603,418 after the halving. This would require attempting to purchase $350 million worth of 585 to 1,170 Bitcoin tokens daily, which represents just one demand vertical.
However, market dynamics and a rapid change in inflows could negate this possibility. Crypto analysts, on the other hand, believe that Bitcoin inflows could increase sharply due to institutional investments via the newly launched spot ETFs. Therefore, Bitcoin HODL's analysis could hold true if the current Bitcoin ETF inflow frenzy continues, as it has recently seen over $400 million in daily inflows.
Also Read: BlackRock Now Holds $6 Billion in BTC as Bitcoin ETF Sees Net Inflows of $477 Million
A close look at the impact of ETFs on Bitcoin price
On the other hand, Dutch investor Marc van der Chijs went to X and noted that Bitcoin could rise above $69,000 and reach a new all-time high before the halving. The analyst conducted an in-depth analysis of the post-ETF Bitcoin charts, which resulted in interesting price predictions for the next three months. He noted significant market inefficiency related to ETF inflows, resulting in a 2% daily price increase, which is equivalent to approximately $1,000 per day.
This increase occurs mainly during the settlement period before the opening of the US market. Additionally, Van der Chijs suggested potential trading opportunities based on this pattern but emphasized his focus beyond day trading.
Additionally, he highlighted the current ratio of spot Bitcoin ETF inflows to newly minted Bitcoin, which is estimated to be between 10x and 12x. Additionally, the analyst expects continued demand-driven price increases as investors attempt to fulfill ETF orders. This, coupled with the upcoming BTC mining reward halving in mid-April and the delayed ETF sales window for financial advisors, further supports its bullish outlook.
Van der Chijs speculated an average daily increase of $1,000 in the coming weeks, with potential for even bigger gains after the halving and the start of advisor sales. Furthermore, barring any unforeseen events, he predicted a new all-time high of over $69,000 before the halving, which could potentially rise to $100,000 within the next two to three months.
Also Read: 5 Cryptocurrencies to Buy Before the Next Bitcoin Halving in 2024
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