Maybe it's because there aren't as many around now. Only 21 million coins will ever be produced, and millions of those coins have already been irretrievably lost. Another explanation could be that everyone has heard the tale of how Bitcoin and even cryptocurrencies will lead to the greatest transfer of wealth in history. We have all heard forecasts that the price of Bitcoin will one day reach $100,000, $400,000. even $1,000,000. We are fortunate to know the true secret of its value, therefore we are attempting to gather as much as we can before the rest of the world realizes it. All of these things, along with a number of other things, can make us feel extremely FOMO when it comes to purchasing Bitcoin, which occasionally leads to us investing too much.
The bitcoin market is a sector that constantly looks forward. What obstacles will we encounter next, and what encouraging developments are on the horizon? With that in mind, today we'll look at the main causes of your potential impending extreme FOMO over Bitcoin.
Banking Collapse
The banking crises have been this year's most significant news item by far. What began in the United States swiftly spread throughout the world. While the government's backing of the money appeared to have temporarily stemmed the spread of the disease in the US. However, there are credible rumors that this is just the beginning. that the real show is about to start.
Bitcoin's price rose from $19k to $29k in only one week when banks initially started failing last month. The price changed, but more significantly, it also changed the market's mood from bearish to bullish. People's money was being locked away as they were informed that the money in the bank wasn't theirs. People only discovered Bitcoin's true value at that point.
People will need to act swiftly if further banks start to fail since they will receive a crash training in Bitcoin at that time. It's possible that a stampede will rush in the direction of BTC. Everyone needs to be paying great attention to this scenario.
Balaji’s $1 Million Bitcoin Price in 90 Days Bet
While the recent top news item has been the banks collapse, another story has the attention of Bitcoin and cryptocurrency aficionados. Former Coinbase CTO Balaji Srinivasan took a wager that the price of Bitcoin will hit $1 million within 90 days.
Even the most optimistic among us were surprised by this prediction. Although a lot of people have their doubts about this wager for obvious reasons, it is entertaining to consider. if the US dollar experiences hyperinflation, if banks do continue to fail, and if individuals are unable to access their money. All of these elements might prompt a rush into Bitcoin once more.
Only about 70 days remain in this wager, and Bitcoin's price has been stuck at $28,000 for the past week. But if there's one thing we do know about Bitcoin, it's that it moves swiftly once it does. Even Balaji might not anticipate that it will cost $1 million in that time span. He has expressed the hope that this will serve as a wake-up call to the situation for a large number of individuals. They must flee to Bitcoin while they still have the chance now that the alarm has gone off.
US Government Attacking Bitcoin and Crypto
The US government has launched a fierce campaign against Bitcoin and the cryptocurrency sector in recent weeks. They are allegedly aiming to block access to the on/off fiat ramps to cryptocurrency exchanges using "operation chokepoint 2.0." While they might not be able to outright outlaw cryptocurrency, they can make it far more difficult for the common consumer to obtain it.
This circumstance reveals to me two crucial facts. The first is that the US and the government are in a challenging situation. Perhaps they are now acting following the FTX fraud because they were not only embarrassed but also because things with the dollar and banks are not going well.
The other point is that Bitcoin has achieved legitimacy. It has developed to the point that it can no longer be ignored and is now formally recognized as a danger to the dollar and governmental authority. They are assaulting the sector with everything they have in an effort to make up for lost time. Always keep in mind that BTC has always had something in the cards.
The Bitcoin Halving
We have now reached the Bitcoin halving. The rate of new Bitcoins will be decreased in half again the following year. resulting in a decrease in the pace of inflation and a further increase in the scarcity of the asset.
The halving initiates the 4 cycles that Bitcoin has historically experienced. We typically see record prices during the first two bullish years. Prices have been retracing during the past two years, and the market is pessimistic. The cycle then resumes with the subsequent halving.
In 2020, the most recent halving took place. After the Covid meltdown a few months prior, the price of BTC fell to $3,500. However, the price increased to $10,000 due to the hullabaloo around the price halving. After a few months of sideways price movement, the price started to soar at the year's end. eventually rising to a new record-breaking price of $69k. The price grew more than 20 times from its March low of $3.5k and its all-time high of $69k in November 2021.
Even if Bitcoin performed only half as well this time around, increasing by only 10x, the price is currently $28k. Even so, the cost would be close to $300,000. There are numerous hypotheses regarding the various artificial variables that caused the previous bull cycle to end prematurely. This suggests that a stronger bull cycle this time around is possible.
While none of them are certain to influence the price of Bitcoin. It will undoubtedly be interesting to observe and see what transpires, that much is certain.
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