Adam Back called Bitcoin undervalued and predicted a rise to $1 million

The price of digital gold is "unjustifiably low" and is capable of reaching between $500,000 and $1 million in the current four-year market cycle. This was stated in an interview with Decrypt by Blockstream co-founder and cypherpunk Adam Back.

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

According to the cryptographer, the first cryptocurrency is undervalued, despite the approval of spot exchange-traded funds in the U.S., which brought in over $41 billion in net inflows, as well as the cryptocurrency-friendly policy of U.S. President Donald Trump.

"There is no obvious logical reason for me why we are only at $100,000. That's not very high, considering all the changes compared to a couple of years ago," added Beck.

The expert emphasized that brokers and retail investors tend to buy assets that have already shown a rise. 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 historical maximum, the price could quickly become much higher," he concluded.

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

As a reminder, in April, Beck stated that the rise of bitcoin reserves on the balances of public companies contributes to the sustainable process of "hyperbitcoinization." The latter could increase the market capitalization of the first cryptocurrency to $200 trillion.