Bitcoin (BTC) Price Could Reach $1 Million Due to Scarcity, Warns Samson Mow, CEO of JAN3

Samson Mow, CEO of JAN3, a well-known Bitcoin advocate, has warned of an incoming supply crisis. He claims that Bitcoin is in a “bear trap” and could reach $1 million

Samson Mow, CEO of JAN3 and a known Bitcoin bull, has warned of an impending "supply crisis" that could send the apex coin to $1 million.

In a recent statement, Mow, a well-known figure in the crypto sphere, expressed his thoughts on the surprising resilience of Bitcoin despite the recent bear trap. He argued that the narrative of coins being readily available on exchanges doesn't align with reality.

According to Mow, a significant portion of the Bitcoin supply is either locked up in long-term holdings or has been lost forever. This scarcity is driving up demand, a factor that could propel the apex coin to new highs.

"People think there are lots of coins available, but they are locking up in ETFs, institutions are buying, and if you look at the exchange balances, there are no coins available. We are seeing the effects of scarcity play out in real time. It is no coincidence that after a 'bear trap' saw BTC price fall sharply only to recover quickly, we are seeing signs of a strong institutional bid that is buying up any coins that come available. It seems traders are massively short-term focused and missed the bigger picture of what is unfolding in the long term. But with the sudden reduction in BTC supply, it appears traders and investors may be waking up to this new reality."

As the narrative of Bitcoin's fixed supply of 21 million is well-known, rendering it a narrative that is "not new," Mow highlighted that with more BTC being locked up in long-term holdings and less becoming available, "the narrative of scarcity is now playing out more visibly."

Highlighting that institutions and ETFs continue to accumulate, which reduces the coins available for trading, Mow noted that this scarcity is pushing prices higher. However, he pointed out that traders are focused on the short-term price action and may be missing the bigger picture of the long-term trends unfolding.

"We are seeing the effects of scarcity play out in real time. It is no coincidence that after a 'bear trap' saw BTC price fall sharply only to recover quickly, we are seeing signs of a strong institutional bid that is buying up any coins that come available. It seems traders are massively short-term focused and missed the bigger picture of what is unfolding in the long term.”

But as the story goes, all things must come to an end. In this case, it seems that traders and investors may be waking up to this new reality. Having hit a low of $79k on Monday morning, the BTC price quickly recovered to retest the $85k level, suggesting that traders may be finally reacting to the unfolding events in the market.

This observation aligns with recent analysis from independent market researcher Darius_analyse, who identified a potential bullish outlook with a triple bottom forming around the $79k mark.

However, other market participants are highlighting the potential for market volatility in the coming period.

"The market is in a fragile state, and we could see some wild swings in price action as traders and investors try to anticipate the next move," warned a market analyst from FX Empire.

"The recent bear trap, which saw the BTC price drop sharply before staging a rapid recovery, could be a sign of the strong buying pressure that is emerging as a result of the tightening supply conditions," the analyst added.

The analysis comes as the apex coin faces strong selling pressure, having recently fallen below the crucial support levels of $83,584.82 and $85,800.88.

At the time of writing, Bitcoin is changing hands at $82,188.3, having dropped from a high of $85,102.97, according to Benzinga Pro data.