The recent endorsement by the Securities and Exchange Commission of multiple Bitcoin ETFs triggered significant volatility in the market value of Bitcoin. After the announcement, Bitcoin initially saw a surge to $49,000, only to later retreat to approximately $42,000. With the impending Bitcoin halving in April, experts hold varying opinions on the prospective price trajectories of Bitcoin. Let’s take a look at this Bitcoin price article.
How has Bitcoin Price moved in recent days?
As of now, the price of Bitcoin is $42,743, and it has a 24-hour trading volume of $25.44 billion. The market cap of Bitcoin is $837.71 billion, with a market dominance of 49.43%. Over the last 24 hours, the BTC price increased by 0.18%.
Bitcoin achieved its highest price on November 10, 2021, reaching an all-time high of $68,770. On July 17, 2010, it recorded its lowest price at an all-time low of $0.050000. Since its all-time high, the lowest price was $15,599 (cycle low), and the highest BTC price since the last cycle low was $48,941 (cycle high). Currently, the sentiment for Bitcoin price prediction is neutral, and the Fear & Greed Index shows a value of 52, indicating a neutral stance.
The circulating supply of Bitcoin is 19.60 million BTC out of a maximum supply of 21.00 million BTC. The current yearly supply inflation rate is 1.99%, resulting in the creation of 382,052 BTC in the last year. In terms of market cap, Bitcoin holds the top position in the Proof-of-Work Coins sector and is ranked first in the Layer 1 sector.
Samson Mow Says BTC Will Reach $1M in Days
Samson Mow, a market expert and founder of the investment firm Jan3, anticipates a significant rise in Bitcoin’s price, potentially reaching $1 million in just days or weeks. He attributes this expectation to the perceived benefits of the emergence of a spot Bitcoin ETF. Mow had previously expressed positive sentiments about Bitcoin’s future.
In a recent statement on his official X account, Mow introduced the Max Pain Theory into the discussion, suggesting that it is still applicable to Bitcoin. According to this theory, on the day of expiration, the price of an underlying asset moves toward a point that causes the maximum loss or “pain” to the highest number of options buyers, or, conversely, results in the minimum loss to option sellers.
In this context, Mow suggests that influential Bitcoin holders may strategically drive the selloff to a point where the asset becomes particularly attractive for purchase. The recent introduction of a spot Bitcoin ETF triggered a “sell the news” scenario, as demonstrated by the withdrawal of shares from the Grayscale Bitcoin Trust (GBTC), leading to a temporary drop in Bitcoin’s price to $42,462 in the past week.
While Mow remains optimistic about the potential for Bitcoin to reach $1 million, the exact starting point for this surge is yet to be determined.
What is Max Pain Theory?
The Max Pain Theory, as mentioned in the context of Bitcoin price details, is a concept that suggests on the day of options expiration, the price of the underlying asset (in this case, Bitcoin) tends to move toward a point that causes the maximum loss or “pain” to the largest number of options buyers. Conversely, it aims to result in the minimum loss for options sellers.
In simpler terms, the theory implies that market forces, especially those with significant holdings in the asset (high-value holders or “whales”), may strategically influence the price movement to a level where it causes the most financial discomfort or loss for traders who hold options contracts. Options contracts give the holder the right (but not the obligation) to buy or sell an asset at a predetermined price before or at the expiration date.
In the context of the discussed Bitcoin scenario, Samson Mow suggests that high-value holders of Bitcoin may orchestrate a selloff, possibly in connection with the emergence of a spot Bitcoin ETF, to a point where Bitcoin becomes attractively priced for purchase. This strategic influence is believed to align with the Max Pain Theory, where the overall market dynamics are manipulated to cause the maximum loss for options buyers and, consequently, a more favorable situation for options sellers or those looking to buy Bitcoin at a lower price.
