In a recent prediction, Strike CEO Jack Mallers has forecasted a potential seven-figure price for Bitcoin (CRYPTO: BTC) during the current cycle, driven by efforts to save the bond market.
What Happened: Mallers, the head of Bitcoin's Lightning Network wallet Strike, believes that Bitcoin could appreciate between 297% and 1,486% from its current level, Daily Hodl reported on Friday. This prediction is based on the potential loosening of monetary policy in an attempt to save the bond market.
Mallers pointed out that the bond market is facing significant challenges for arguably the first time in modern financial history. He noted that bondholders, including banks, are suffering as the bonds purchased with their deposits are underwater.
Mallers suggests that if central banks and governments attempt to salvage the bond market, the required liquidity will send asset prices soaring.
He stated, "So if that happens it's impossible to speculate on an asset as scarce as Bitcoin. But I think $250,000 to one million is the imagination I have in that range of just how big this can get."
He further emphasized that the price of Bitcoin is the "most accurate key performance indicator (KPI)" for its adoption. Mallers expects more global adoption of Bitcoin as a monetary unit, which he believes will drive its value "violent to the upside" against the dollar and other fiat currencies.
Why It Matters: Earlier, a significant technical indicator had prompted a sell-off signal for Bitcoin, raising concerns among traders and investors. The digital currency was also encountering resistance at the mid-level of a parallel channel.
However, cryptocurrency influencer and analyst Lark Davis also shared a bullish outlook on the Bitcoin market, indicating that the bull run was far from over. He cited several key factors, including a 6.4% surge in large transaction volume to $47.1 billion.
Price Action: According to Benzinga Pro, Bitcoin was trading at 0.68% lower at $63,855.60.
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