Bitcoin traders predicting the asset’s price returning to the $40,000 level might be driven more by fear than by any technical fundamentals, according to Bitcoin technology firm Jan3 CEO Samson Mow.
“Bears sayingBitcoin will drop to $0.04M have no basis for that prediction other than self induced fear,” Mow wrote in an Sept. 6 X post.
Mow says Bitcoin can ‘just as easily’ reach $100K
Despite Bitcoin’s (BTC) recent seven-day period trading below $60,000, Mow believes Bitcoin could just as easily hit six figures, citing macroeconomic factors like the significant amount of interest the United States government pays on its debts daily, and the growing number of businesses holding the asset.
“Bitcoin can just as easily go to $0.1M and that is supported by brrrr, +$3B in debt per day, strategic Bitcoin reserves, pensions allocating, and corporations buying,” he stated.
Macroeconomic resource The Kobeissi Letter added that the $3 billion daily interest expense for the US government on its debt “is TRIPLE the amount paid 10 years ago and has DOUBLED in just 2.5 years.”
“Debt crisis is an understatement,” The Kobeissi Letter wrote.
Fundamentals ‘win out’ over time
However, Mow said that fear-driven markets are only a short-term issue, with fundamentals eventually coming out on top.
“Can fear move the market? Sure. But it never lasts long because the fundamentals win out over time. Even the unwinding of some of the greatest frauds like FTX can’t keep price down,” he claimed.
Related: Watch these 3 BTC price levels if Bitcoin breaks below $55K
Bitcoin is currently trading at $53,824, having not traded above the crucial $60,000 level since Aug. 30, according to CoinMarketCap data.
Bitcoin is down 5.75% over the past 30 days. Source: CoinMarketCap
The Crypto Fear and Greed Index is at an “Extreme Fear” score of 23. On Sept. 5 Cointelegraph reported that several analysts warned of a potential price correction below $50,000 in the coming days.
BitMEX founder Arthur Hayes wrote in an X post that “BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”
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