Why Bitcoin could skyrocket to $1 million thanks to this overlooked factor

Although Bitcoin (BTC) has started to consolidate its gains from the previous days, setting the mood for the majority of other assets in the cryptocurrency market, a stellar price of a whopping $1 million is almost a certainty in its future with one particular factor at play.

As it happens, the Bitcoin market seems to be in the early stages of a phenomenon called ‘game theory,’ which could play an important part in driving further mainstream adoption and price gains for the flagship decentralized finance (DeFi) asset, according to The Motley Fool’s RJ Fulton.

Ideal Bitcoin portfolio allocation. Source: ARK Invest

Game theory for Bitcoin

This is an example of game theory in its infancy – institutional investors (rational actors) making strategic moves in their own best interest based on observing the actions of others. In this case, institutions see their peers profiting from their BTC investments, creating fear of missing out on the returns.

In accordance with their natural competitiveness, these institutional players might use the massive resources in their hands to try and stay ahead of the competition, creating more sense of urgency and taking the game to a whole new level, sending the price of Bitcoin to new records.

As a reminder, game theory is a concept that deals with competitive interactions and strategies in which the outcome of a participant’s choice of action depends critically on the actions of other ‘players,’ often applied in the contexts of business, finance, biology, politics, and other areas.

Bitcoin price analysis

For now, Bitcoin is trading at the price of $68,260, down 0.5% in the last 24 hours, with an accumulated loss of 4.32% in the previous seven days but nonetheless gaining 7.35% over the past month, according to the latest charts retrieved by Finbold on May 28.

Bitcoin price 30-day chart. Source: Finbold

All things considered, the price of Bitcoin might be heading toward the mind-blowing figure of $1 million sometime in the future, but it is important to understand that trends in this market can sometimes change tremendously, so doing one’s own research is critical.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.