After rising more than 15% in a week, as well as surpassing its March all-time high and various news charts, the latest of almost $80,000, bitcoin has once again become the focus of massive price predictions.
While some come from questionable and unknown analysts and sources, one of the original bullish cases, the stock-to-flow model developed by PlanB, indicates a rather impressive price of $500,000 per BTC, as the asset looks “a point to take off”.
After the ETF fake earlier this year, bitcoin is ready to take off. The stock-to-flow model predicts an average of 500 k with a bandwidth of 250 k-1 m. Please note this is the original 2019 model fitted with 5 years of fresh data – same parameters, same results (55k -> 500k -> 4m)https://t.co/9mxETi4N1W pic.twitter.com/U9sgoxHZO3
— PlanB (@100trillionUSD) November 9, 2024
BTC to $500,000?
Based on scarce commodities like gold and silver, PlanB described Bitcoin’s original stock-to-flow model years ago, in which the stock is the already existing supply of BTC, while the flow is the annual production. Since the latter is halved every four years after each halving, it should make the cryptocurrency more valuable over time.
In fact, PlanB’s model has drawn several fairly bullish price predictions in the past. However, many of them did not come to fruition, such as $100,000 or $135,000 at the end of 2021.
PlanB mentioned the early 2024 breakout, which they called a “fake”, when BTC surged to $73,737 after the launch of US-based ETFs. However, the rally that started now after Trump’s victory in the US presidential election looks much more sustainable, according to the model. As such, BTC could rise even more than the average prediction of $500,000.
Bulls ready to buy?
After it became clear that Donald J. Trump would be the next President of the United States, crypto investors who stayed on the sidelines for the past few months returned with massive purchases. This is evident not only from ETF inflows, but also from the growing number of stablecoins flying on exchanges.
Minted Tether 2B $USDT in just 2 days!
Where were these minted $USDT to go
2.54B $USDT has come out of #Tether to exchanges from November 6!
A massive amount of money is being injected into the crypto market! pic.twitter.com/WhK7kgkW2q
— Lookonchain (@lookonchain) November 10, 2024
Such impressive numbers heading to trading platforms suggest that investors have started buying or are preparing to do so in the near future, which could push prices even higher.
SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).
2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!