Bitcoin Stock To Flow Model Reveals $500,000 Price Target
10 Novembre 2024 - 10:30AM
NEWSBTC
According to data from CoinMarketCap, Bitcoin (BTC) has gained by
0.66% in the past 24 hours with its market price now hovering close
to $77,000. This slight price increase compounds an impressive
performance in the last month during which BTC’s value has risen by
27.82%. As the crypto bull season appears to be kicking off,
the popular Bitcoin Stock-to-Flow model has revealed a lofty price
target for the largest digital asset. Related Reading: Bitcoin
Could Be Ready For ‘Phase 2’ Of This Historical Bull Pattern Why
Bitcoin May Reach $500,000 In an X post on November 9, a
pseudonymous analyst and developer of the Bitcoin Stock-to-Flow
model shared a price prediction on the maiden cryptocurrency. For
context, the Stock-to-Flow model is a popular market framework that
forecasts BTC’s price based on projected scarcity. According to
PlanB, data from this analysis model currently suggests that the
crypto market leader will attain an average market price of
$500,000 over the next four years with a projected price range of
$250,000 – $1 million. The analyst explains that the Bitcoin bull
season is still at an early stage as indicated by the red dots on
the Stock-to-Flow model chart, despite the recent price rally
induced by Donald Trump’s electoral victory and even the “fake-out”
recorded in Q1 2024 following the Spot Bitcoin ETF launch.
Aside from historical data, PlanB states multiple future events
indicate BTC’s massive potential to attain the established price
target. For example, the pseudonymous analyst references Trump’s
intention to establish a National Bitcoin Reserve which may likely
be enacted by Senator Cynthia Lummis’s proposed Bitcoin Act that
will see the US purchase 200,000 BTC annually for the next five
years. PlanB also highlighted Michael Saylor’s Microstrategy
recently published objective to purchase $42 billion BTC by 2027.
The market analyst explains that both massive acquisition programs
would stimulate a high buying pressure on BTC which should
translate to sharp price increases. In addition, PlanB states
the Spot BTC ETFs have experienced enormous inflows, valued at
$2.294 billion, since Trump’s election, which will only go higher
in the coming months contributing to BTC’s demand.
Importantly, the analyst kicks against doubting the Stock-to-Flow
model despite Bitcoin attaining an average price of $34, 000 in the
last cycle rather than the predicted $55,000 since the market model
revealed a price target range of $25,000-$100,000. BTC Price
Overview At the time of writing, BTC trades at 76, 745 reflecting a
price gain of 11.85% in the past seven days. However, the asset’s
trading volume has decreased by over 40% in the 24 hours reaching
$28.33 billion. Related Reading: Rising Bitcoin Funding Rates
Signal Market Optimism—But Is A Correction Looming? Featured image
from Atlantic Council, chart from Tradingview
Optimism (COIN:OPUSD)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Optimism (COIN:OPUSD)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024