After a sharp increase of over 15% in a week, bitcoin once again becomes the subject of massive price predictions. The stock-to-flow model suggests that bitcoin could reach $500,000 per coin.
Bitcoin Price Predictions
While some predictions come from lesser-known analysts, the original stock-to-flow model developed by PlanB indicates an impressive price of $500,000 per BTC.
Basics of Stock-to-Flow Model
The stock-to-flow model is based on scarce commodities like gold and silver. The stock is the already existing supply of BTC, while the flow is the annual production. As the latter is halved after each halving, the cryptocurrency should become more valuable over time.
Bulls Return to the Market
After Donald Trump's victory in the elections, investors began to actively return to the market. This is evident from both ETF inflows and the growing number of stablecoins on exchanges.
Intensive monetary flows into cryptocurrencies and predictive pricing models indicate high potential for further bitcoin growth. Experts continue to watch the market in anticipation of further price jumps.
