Outside Source
After surging by more than 15% within a week, as well as breaking its March all-time high and charting several news ones, the latest at almost $80,000, bitcoin has become the focus of massive price predictions once again.
While some come from questionable and unknown analysts and sources, one of the original bull cases – the stock-to-flow model developed by PlanB – indicates a rather impressive price of $500,000 per BTC as the asset seems “ready to take off” now.
After the ETF fake-out earlier this year, bitcoin is now ready to take off. Stock-to-flow model predicts 500k average with 250k-1m bandwidth. Note this is the original 2019 model refitted with 5y new data: same parameters, same results (55k -> 500k -> 4m)https://t.co/9mxETi4N1W pic.twitter.com/U9sgoxHZO3
— PlanB (@100trillionUSD) November 9, 2024
BTC at $500K?
Basing it on scarce commodities like gold and silver, PlanB outlined the original Bitcoin 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 slashed in half every four years after each halving, it should make the cryptocurrency more valuable in time.
In fact, PlanB’s model has outlined several quite bullish price predictions in the past. However, many of those failed to come to fruition, such as $100,000 or $135,000 by the end of 2021.
PlanB mentioned the early 2024 break out, which they labeled as ‘fake-out,’ when BTC shot up to $73,737 after the launch of the US-based ETFs. However, the rally that started now after Trump’s victory in the US presidential elections seems a lot more sustainable, according to the model. As such, BTC could surge even higher than the median prediction of $500,000.
Bulls Ready to Buy?
After it became clear that Donald J. Trump would be the next president of the States, crypto investors who stood on the sidelines for the past several months returned with massive purchases. This is evident not only from the ETF inflows but also from the growing number of stablecoins that are flying into exchanges.
Tether minted 2B $USDT in just 2 days!
Where did these minted $USDT go?
2.54B $USDT has flowed from #Tether to exchanges since Nov 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 toward trading platforms suggest that investors have begun purchasing or are preparing to do so in the near future, which could send prices even higher.
This article first appeared at CryptoPotato
