Bitcoin, going to $1 million?...Expert: 'This' is still lacking

▲ Bitcoin (BTC)

Optimism surrounding Bitcoin (BTC) is growing again. Despite recent price drops, many market participants believe that Bitcoin can rise to higher prices, and expectations for a new bull market are spreading, driven by increased Google search volume, institutional expectations, and interest rate cut forecasts.

Bitcoinist reported on May 20 (local time), citing an analysis by market expert TheModernInvestor, that the cryptocurrency market has entered a critical phase that most investors are currently missing. He pointed out that despite the recent decline in Bitcoin's price, there is still a lack of clear positive movement from individual investors actively returning to buy assets. However, he explained that Bitcoin's Google search volume has increased, and investors have started searching again for what assets to buy during a downturn and how to buy Bitcoin and Ethereum (ETH).

TheModernInvestor stated that institutional investors, corporations, and key participants are currently mentioning a new bull market. Some investors are claiming that the bear market or crypto winter is over, and this optimism is attributed to the U.S. cryptocurrency market structure bill, which has passed the Senate Banking Committee vote, and expectations of interest rate cuts. This, he explained, is strengthening the belief among cryptocurrency and stock market investors that asset prices will continue to rise.

Cathie Wood, founder of ARK Invest, has also been gaining attention online in recent weeks. According to TheModernInvestor, Wood stated, based on ARK Invest's research, that the market is rising again, and Bitcoin could reach a valuation of approximately $1 million per coin in the coming years. He mentioned that Michael Saylor, founder of Fidelity and Strategy, also made similar predictions. With major institutions and figures in the market all leaning towards a bull run, an environment has been created where it is difficult for investors to suppress their excitement and not follow the trend, according to the analysis.

TheModernInvestor pointed out that the cryptocurrency market tends to revolve around the movements of institutional players. In 2017, when Bitcoin was not recognized with a clear valuation, many people ignored it and ridiculed investors, but market interest rapidly increased after BlackRock CEO Larry Fink mentioned Bitcoin. This means that changes in institutional attitudes strongly influence individual investor sentiment.

The debate surrounding quantum computing was also treated as a key variable in the article. TheModernInvestor said that major blockchains such as Ethereum, XRP, and Cardano (ADA) are preparing their networks to better respond to quantum computing to enhance security. At the same time, some Bitcoin developers are also trying to make the Bitcoin network quantum-secure, and one of the proposed methods is to freeze old wallets.

This proposal sparked fierce controversy in the cryptocurrency industry. According to the article, this is because these developers appear to be targeting the wallet of Bitcoin founder Satoshi Nakamoto, who is known to currently hold about 1 million BTC. Alex Thorn, Head of Firmwide Research at Galaxy Digital, warned that even if Bitcoin's price plummets by 50% and altcoins fall by 90%, Nakamoto's coins and Bitcoin's core property rights must be preserved.

TheModernInvestor believes that this cycle could be one of the most challenging cryptocurrency cycles for individual investors who have not yet entered the market. Even investors who already hold cryptocurrencies may face unexpected developments during the cycle's progression until 2026. He assessed that as overall price expectations in the market continue to rise, this decade will be recorded as one of the most remarkable periods in global investment history.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*