Some people predict that $BTC can rise to $1 million based on a comprehensive consideration of multiple factors. First, in terms of total volume, the total amount of Bitcoin is fixed at 21 million. If its unit price reaches $1 million, the total market value will reach $21 trillion. Compared with the current global economic size, such as the total US Treasury bond ($35 trillion) and the total market value of US stocks ($55 trillion), this value is not theoretically unattainable.
Secondly, the rising momentum of Bitcoin comes partly from the inflow of market funds, especially the inflow rate of funds into US ETFs (Exchange Traded Funds), which has an important impact on its price trend. At present, the total amount of funds in Bitcoin ETFs has reached $60 billion to $70 billion, and with the risk of a sharp drop in the US stock market, some high-risk preference funds may flow into Bitcoin ETFs. According to institutional estimates, this increase may be between $30 billion and $50 billion.
Furthermore, the behavior of market participants also reflects a strong willingness to hold Bitcoin. For example, the German government's large-scale over-the-counter transactions of selling Bitcoin were easily absorbed by institutions, which shows that institutional investors are optimistic about Bitcoin. In contrast, the risk of buying high P/E stocks such as Nvidia is, in the eyes of some investors, even greater than investing in Bitcoin.
In addition, changes in the macroeconomic environment are also seen as potential catalysts for Bitcoin's rise. In particular, when political changes (such as the "King of Understanding" taking office) may lead to a rapid rate cut by the Federal Reserve, the expected depreciation of the US dollar index will accelerate, which is generally beneficial to assets such as Bitcoin and gold. Since both Bitcoin and gold have natural deflationary characteristics, in sharp contrast to the ever-increasing issuance of US dollars and US bonds, they are expected to achieve significant appreciation in this environment.
In summary, based on multiple factors such as the scarcity of Bitcoin, the inflow of market funds, the willingness of institutional investors to hold, and changes in the macroeconomic environment, some people predict that the prospect of Bitcoin rising to $1 million is entirely possible.