Adam Back Predicts Bitcoin Surge to $1 Million, Calls It Undervalued

The price of digital gold is “unjustifiably low” and could reach between $500,000 and $1 million in the current four-year market cycle, according to Blockstream co-founder and cypherpunk Adam Back in an interview with Decrypt.

He believes that the influx of institutional money into the industry should have pushed the price of Bitcoin significantly higher than current levels.

The cryptographer opines that the leading cryptocurrency is undervalued, despite the approval of spot exchange-traded funds in the US, which have brought in over $41 billion in net inflows, as well as the crypto-friendly policies of former US President Donald Trump.

“To me, there is no obvious logical reason why we are only at $100,000. It’s not very high, considering all the changes compared to a couple of years ago,” Back added.

The expert emphasized that brokers and retail investors tend to buy assets that have already shown growth. This strengthens the price momentum: as Bitcoin rises, interest in it increases, leading to an influx of new capital.

“I think if we reach a new all-time high, the price could quickly become much higher,” he concluded.

At the time of writing, digital gold trades at $102,227 (-1.1% over the day), according to CoinGecko. Over the month, the asset’s price has risen by 19.1%.

Back in April, Back stated that the growth of Bitcoin reserves on the balance sheets of public companies contributes to a sustainable process of “hyperbitcoinization.” This could increase the market capitalization of the leading cryptocurrency to $200 trillion.