Adam Back, CEO of Blockstream and one of Bitcoin's pioneers, recently made a noteworthy prediction: the current Bitcoin price is too low and could surge from $500,000 to $1 million in this four-year cycle. Could this be a golden moment for investors?
Current Bitcoin Price: Too Low Compared to Potential
In an interview with #Decrypt , Adam Back – a computer scientist known for his PhD in distributed systems from the University of Exeter and someone who has exchanged emails with Satoshi Nakamoto, the creator of Bitcoin – believes the current Bitcoin price, around $103,300, does not accurately reflect its true value. Despite rising over 7% in the past week and only being 5% below the historical peak of nearly $109,000, Back believes this price is too modest given the cash flow pouring into the market.
He notes, "There is no clear reason why we are only at $100,000. A lot has changed compared to a few years ago." Back points to the approval of spot Bitcoin ETF funds in the U.S. – bringing in over $41 billion in net cash flow – along with President Trump's cryptocurrency-friendly policies as driving factors.
Predicting a Surge: $500K-$1M in This Cycle
Back predicts that the current cycle, lasting several years, could push Bitcoin to $500,000 or even $1 million per coin. He explains, "If a new all-time high is reached, prices could rise faster due to investor trends, both individual and institutional, typically buying in after prices have risen, creating momentum." With a four-year cycle history tied to halving events, Back believes this time Bitcoin could far exceed previous cycles due to the participation of major institutions.
As co-founder and CEO of #Blockstream – a company developing Bitcoin infrastructure like crypto wallets – Back has insightful perspectives from personal experience. He previously contributed the idea of Hashcash, the foundation for Bitcoin mining mechanisms, asserting a deep understanding of this currency's potential.
Impact From Organizational Cash Flow And Market Trends
The approval of Bitcoin ETFs from the SEC, managed by funds like BlackRock and Fidelity, has opened the door for previously restricted investors, creating a strong new influx of capital. Back emphasizes, "More money will flow in as Bitcoin rises, creating price momentum." This aligns with market data, as crypto fund inflows reached $3.4 billion last week and are forecasted to accumulate $330 billion into Bitcoin by 2029. Ethereum ($2,500) and other altcoins are also expected to benefit from this trend.
Long-Term Outlook: Bitcoin Ready to Break Out
Although the current Bitcoin price may not fully reflect its potential, Back believes this cycle will be different due to the participation of major financial institutions. In the next 1-2 years, if the upward trend continues, Bitcoin could far exceed predictions, solidifying its position as a dominant asset. However, investors need to monitor closely to seize opportunities and avoid risks from volatility.
Conclusion: Will Bitcoin Shape the Future of Finance?
Adam Back believes that the current Bitcoin price of $103,300 is too low and could rise to $500,000 to $1 million in this cycle, thanks to organizational cash flow and market trends. With a pioneering role and deep experience, his predictions open hope for a sustainably growing cryptocurrency market. This is a time full of potential, but it also requires caution from investors.
Risk Warning: Cryptocurrency investment carries high risks due to price volatility and legal instability. Consider carefully before participating.