Popular cryptocurrency analyst Willy Woo has commented on bullish $1 million Bitcoin ($BTC) price predictions that have been made over the past several months, including from former Goldman Sachs executive Raoul Pal and from an Ark Invest analyst.
In tweets shared with Woo’s over one million followers on the microblogging platform, Woo addressed the $1 million Bitcoin price predictions that have been made, noting that the flagship cryptocurrency could, at the corresponding capitalizations, become a “true challenger to fiat, thus it’s a price range where fiat collapses.”
The analyst suggested that as BTC approaches the market capitalization of fiat currencies there’s increasing bearish pressure on its price, potentially from governments suppressing $BTC. He added that if $BTC were to “break the sound barrier,” its price would be affected by bullish pressure to “escape towards infinity.”
Among those predicting Bitcoin’s price could reach $1 million, there’s also the CEO of cryptocurrency exchange Kraken, who has said he believes “Bitcoin is going to be $500,000 easily within the next few years” over “how much money printing is going on,” and added that Bitcoin will hit $1 million “easily.”
In a separate tweet, the on-chain analyst revealed he believes the ongoing bear market will be longer than the one seen back in 2018, but shorter than in 2015, noting that this cycle’s “accumulation zone” and its size are the main questions to ask for now.
In his analysis, Woo shared a chart showing the cost basis of Long Term Holders (LTHs), which are investors who have held onto their $BTC holdings for at least 155 days, and short-term holders (STHs). The chart suggests that when the cost basis of STHs drops below that of LTHs, the market bottoms out.
At the time of writing, Bitcoin is trading at $16,600 per coin. Bearish pressure on the cryptocurrency, which has been negatively affecting its price, could be coming in from miners selling large amounts of BTC and facing financial struggles such as liquidity crunches and bankruptcy.
Some analysts have commented that the current state of the $BTC mining industry is not sustainable, and that miners need to be more proactive in managing their $BTC positions in order to stay afloat. There is also a suggestion that the previous strategy of “mine-and-hold” (holding onto mined coins rather than selling) may not be viable in the current market.
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