Inside:

Experts are predicting a significant surge in the value of crypto following the fuss around ETF approval and subsequent market reactions.
JAN3 CEO predicts that Bitcoin will go up to $1 million because of demand, supply, capital inflows, and price shocks.
Raoul Pal of Real Vision suggests that Bitcoin could reach between $500,000 to $1 million by the end of 2025, considering bigger macroeconomic factors.

Introduction

The imminent approval of Bitcoin ETFs and the likelihood of stimulating a new era in the cryptocurrency industry have sparked interest among enthusiasts and experts. This development can unleash unimaginable possibilities and invite massive capital injections into the industry. Onlookers like Samson Mow and Raoul Pal have opined that Bitcoin could be worth up to a whopping $1 million.

ETFs approval, Bitcoin’s limited supply will trigger a significant price escalation

Samson Mow, the CEO of JAN3, in a recent YouTube interview, opined that the ongoing crypto bull market is significantly different from the previous ones. Potentially breaking the conventional four-year cycle pattern, Mow predicted that Bitcoin is on its way to $1 million.

“It looks like all the [Bitcoin] ETFs are going to be approved on the same day… [This leads to] hitting a very limited supply of Bitcoin on the exchanges and available for purchase with a torrent of money. So, it’s basically supply shock multiplied by demand shock. And that gives you a price shock. This is why [Bitcoin] can go really high all at one time.” Mow said.

Mow also mentioned that the approval of spot ETFs will unlock loads of capital influx into Bitcoin, triggering an unprecedented price escalation.

“I don’t think [the current] rally is a very special rally. This is a rally for ants. The real rally is when [Bitcoin goes] to $1 million, and that is when the spot [Bitcoin] ETFs are approved, and we have tens of billions, maybe hundreds of billions of dollars flowing to Bitcoin in a very short time frame,” Mow affirmed.

Samson Mow’s prediction is deeply rooted in his observation of Bitcoin’s limited supply, imminent spot ETFs approval, and substantial capital inflow. Another observer analysed the situation based on larger macroeconomic events.

Business cycle and financial conditions can influence asset prices

Raoul Pal, co-founder of Real Vision, attributed Bitcoin’s growth to macroeconomic factors. Two massive secular events, business cycles and financial conditions, will significantly influence digital asset prices according to Pal. He also saw Bitcoin’s price clocking between $500,000 to $1 million by the end of 2025.

“These cycles can be crazy and this one feels more like the 2017 cycle than it does the prior cycle. And, that cycle didn’t have a lot of central banks printing. Central banks’ balance sheets [are now] rising. We saw 20% growth and what happened to liquidity was crypto absolutely exploded. I kind of feel like that’s the case now,” Pal mentioned.

Pal noted that Bitcoin is a formidable asset, comparing it with the S&P 500 since 2013. During this timeframe, Bitcoin consistently outperformed the companies by 88% annually, emphasizing the digital asset’s correlation with global liquidity trends.

“[Bitcoin] is the horse I back the most. It’s the fastest horse in the race. Best risk-adjusted returns, high correlations to this global liquidity index, which is our everything code. So we know how the asset price behaves which gives us a competitive advantage when we use our proprietary frameworks,” Pal added.

Pal posited that these global macroeconomic trends, alongside ETF anticipation, will propel Bitcoin to new heights. He said ETF will be integral to this change because institutional investors will gain more Bitcoin exposure, increasing demand and reducing barriers to entry.

“[Bitcoin] gives us a kind of extraordinary set of numbers… It gives us crazy numbers like $218,000 by May. That’s post-halving and post-ETF. It would also give you a target of half a million bucks by 2026 which is in line with the [logarithmic] trend, so it’s possible,” Pal concluded.

The path to $1 million will be triggered by Bitcoin spot ETFs

From their thoughts, it is obvious that Mow and Pal’s projected price escalation will only be possible following the potential ETF approval. There is a strong indication of this event likely happening, following the instances of big institutional investors like BlackRock entering into the game in the wake of the impending ETF approval.