Samson Mow, the CEO of Jan3 and a well-known Bitcoin advocate, has recently reiterated his bullish stance on Bitcoin, emphasizing his ‘Max Pain Theory’ as a key factor supporting his prediction. Mow envisions a meteoric rise in Bitcoin’s value, confidently asserting that the digital asset will reach $1 million in “days to weeks.”
Samson Mow, Max Pain Theory and $1M Bitcoin Prediction
In a recent X post, Mow underscored his conviction in the Max Pain Theory, a concept tied to a Bitcoin price that induces maximum loss for options traders.
According to Mow, Bitcoin bulls have already faced this loss following the recent approval of Spot Bitcoin Exchange Traded Funds (ETFs), while he anticipates that bears may soon experience a similar fate.
The approval of these ETFs serves as a critical element in Mow’s projection, as he foresees a surge in demand for Bitcoin. Mow contends that the Bitcoin market is approaching a point where the existing supply will fall short of meeting the growing demand. He points to the upcoming Bitcoin Halving event as a potential catalyst for a parabolic rise in Bitcoin’s price, stating:
“What you should be paying attention to is the raw Bitcoin demand, and ignore the short term market inefficiencies. Existing supply will NOT meet current demand, and the Halving is coming in a few months.”
Insights on Ongoing Market Adjustments
Mow also provided insights into the recent decline in the BTC price, attributing it to a market adjustment. He specifically highlighted the rotation of GBTC holders out of the market as a contributing factor. Additionally, the bitcoiner pointed out that MicroStrategy’s stock was trading below Bitcoin’s par value, adding to the downward pressure on Bitcoin’s price. The bitcoin advocate writes:
“MicroStrategy is oversold. Investors could potentially be rotating out of MSTR and into ETFs, just looking for a piece of the shiny new thing, while not understanding that MSTR is in some ways a superior BTC exposure vehicle. MSTR will price correct to be at least over BTC par.”
Despite the current market fluctuations, Mow urges patience, asserting that time is required for the market to recalibrate. He anticipates that the GBTC sell-off pressure will not be a prolonged process, emphasizing that the adjustment will happen relatively quickly. Mow states:
“GBTC sell pressure won’t be a long drawn out process. Many just cannot sell because the tax hit is too big, and eventually Grayscale must capitulate on the fees. This is likely to be sooner rather than later.”
Notably, Grayscale currently charges the highest fee among all spot bitcoin ETF issuers, potentially leading investors to offload their shares and rotate to other funds.
An Optimistic Bull
Mow has a track record of making daring projections about the future value of Bitcoin. In November, the CEO of Jan3 confidently predicted that Bitcoin would reach $1 million. Mow’s forecast is anchored in his belief that Bitcoin will replicate the parabolic growth cycle that propelled the historic bull run in 2017.
He drew attention to the fact that, during that particular period, Bitcoin underwent a remarkable 20x surge, catapulting from $1,000 to $20,000 within a span of just nine months.
