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Since Bitcoin (BTC) hit $ 20,000 for the first time in December 2017, analysts are wondering when that cryptocurrency will break their next big price milestone. The next milestone is probably $ 40,000 or $ 50,000.
Bitcoin is likely to hit $ 50,000, a well-known model predicts. In the spring of last year, a user on Twitter named PlanB suddenly became known in the cryptocurrency space when the analyst unveiled a revolutionary Bitcoin pricing model.
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The model is known as the stock-to-flow model. It determines that after the BTC block reward halving in May 2020, Bitcoin will have a fair value between $ 55,000 and $ 100,000. Although Bitcoin appears to reach this price point at some point due to the model’s historical accuracy, the model does not predict when the surge will occur.
GeertJancap, a Twitter user interested in disruptive technologies, recently tried to solve the mystery of when the Bitcoin price will trade at the price of the stock-to-flow model. He noted in a tweet that the price of BTC will rise to between $ 50,000 and $ 100,000 a year after halving in mid-2021.
The model appears to model the bubbles ánd bear markets fairly well. It confirms a certain inertia of price reaction, so a lag and overshoot. Model would predict: Price will catch up with S2F ratio a year after the halving. And overshoot by ~ 2x. (3/3) h / t Tom! pic.twitter.com/kWecmWgH5e
– GeertJancap (@Geertjancap) January 15, 2020
While $ 50,000 would be an astonishing feat by mid-2021 for a market as uncertain as Bitcoin, some suspect this milestone (or at least a price around $ 50,000) earlier than in the next 18 months.
Ex-Goldman Sachs partner Kelvin Koh, who is now a partner with Blockchain Advisory and Investment Fund The Spartan Group, recently commented on Twitter that he is certain that BTC’s recent move from $ 7,000 to a vague $ 9,000 is “just the beginning” of something a lot Is bigger.
Something bigger, he said, assuming the price of BTC will reach $ 40,000 this year. He explicitly cited his company’s belief that there would be a “shortage of supplies after halving”.
What happened to the guys that thought that BTC halving is priced in? They are in for a rude surprise. This move from $ 7K to $ 9K is just the start. The real parabolic move is ahead of us after the halving in May. pic.twitter.com/mb4tLZ9Vcj
– SpartanBlack (@ SpartanBlack_1) January 15, 2020
There is also Nexo’s chief executive, who said BTC could reach $ 50,000 by the end of the year, as crazy as that may sound.
Text credit: newsbtc
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