The host of the popular YouTube channel InvestAnswers presents forecasts regarding Bitcoin’s price movements based on the study of global money supply.
Price Model Based on Global Money Supply
According to the analysis method, a minor percentage of the world's total M2 money supply shifting to Bitcoin could lead to significant price increases. For instance, if only 0.5% of this new money supply were to flow into Bitcoin, the price could reach approximately $115,000. Currently, there are 15 million Bitcoins in circulation, with 5 million considered lost.
Nation-States and Bitcoin’s Potential
The host highlighted the potential interest of some countries in Bitcoin. Governments printing their own money to purchase BTC could significantly revise price predictions. Such developments could shape the market through political and strategic maneuvers beyond the classic supply-demand balance.
Analysis of the Method and Its Limitations
The systematic approach offers an unconventional method for generating predictions within the cryptocurrency market. By linking macroeconomic factors like global money supply to digital currencies, it shows that price targets can be evaluated not only through technical analyses but also through broader economic parameters.
The systematic approach provides an opportunity to assess Bitcoin's price potential through macroeconomic factors but requires cautious application due to its dependence on multiple variables.
