Bitcoin Stock To Flow Model Reveals $500,000 Price Target

Share This Post

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.

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.

 

Bitcoin

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?

Bitcoin

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Toncoin Liquidity and User Activity Reviewed by Analyst: Insights on Market Impacts

Toncoin (TON) has seen notable changes in its market dynamics so far, driven by supply variations and heightened user engagement across its ecosystem Particularly, according to a recent analysis by

Dogecoin (DOGE) Momentum Seems Unstoppable: How High Can It Go?

Dogecoin started a fresh surge above the $0320 resistance against the US Dollar DOGE is holding gains and eyeing more upsides above $04180 DOGE price started a fresh rally like Bitcoin and climbed

XRP Lawsuit News: Legal Expert Says Ripple-SEC Case Could End in 2025, But There’s a Twist

The post XRP Lawsuit News: Legal Expert Says Ripple-SEC Case Could End in 2025, But There’s a Twist appeared first on Coinpedia Fintech News There’s growing speculation that Gary Gensler, the

An Elusive Indian Suspect at the Center of Indiana’s Crypto Fraud

Authorities in Grant County, Indiana, have recovered $36,000 in a cryptocurrency scam involving Prateek Jain, a 33-year-old man from Kolkata, India Jain faces charges of felony fraud and money

XRP Price Gains Steadily with Swings: Can It Maintain Momentum?

XRP price is slowly moving higher above the $06320 support zone The price tested the $07450 zone and is currently correcting gains XRP price started a decent increase above the $06320 resistance The

Bitcoin Price Prediction: Cup and Handle Pattern Hints at Breakout Above $126,000

The post Bitcoin Price Prediction: Cup and Handle Pattern Hints at Breakout Above $126,000 appeared first on Coinpedia Fintech News The Bitcoin bull market is showing no signs of slowing down