Bitcoin is currently trading at $5,450 with 24-hours gains of 1.29 percent while still down over 70 percent from its all-time high of $20,000 that was hit during the bull run of December 2017. In the short term, Bitcoin is aiming for $6k, but before it makes its way to this level, we could see a correction that according to some analysts is around low $4ks while according to some can still go below $3k which is to be seen.
In the medium term, however, a bullish event in the form of Bitcoin halvening is coming that is expected to take Bitcoin’s price even higher than its previous high. Scheduled on May 23, 2020, we still have 387 days left that will decrease the rewards from 12.5 to 6.25 BTC.
Bitcoin bull Tom Lee has already predicted the shrinking supply and halving to fuel the Bitcoin rally just like the previous two times. Cobra, the co-owner of Bitcoin.org also shared his views on the impact of this event.
“The next 3 or 4 years will determine whether Bitcoin will last and thrive for the next 100 years. The halving as well as hitting the limits of the current block sizes bringing scaling back to the forefront with more controversial hard/soft fork proposals. Will be turbulent times.”
Bitcoin Running in Gold & Silver’s Category
Bitcoin analyst PlanB also shares how there’s still 12 months to next halving but is already near the stock to flow model value.
— planB (@100trillionUSD) May 1, 2019
Stock-to-Flow ratio is the amount of a commodity that is held in inventories divided by the amount produced annually. It is basically a measure of abundance. Gold, in all commodities, has the highest stock to flow ratio at 62.
Back in March, he had shared in his medium article, how Bitcoin has an SF of 25 (stock of 17.5m coins and supply of 0.7m/yr) which puts the leading cryptocurrency in the monetary good categories like Gold and silver.
That time he had stated, “The model predicts a bitcoin market value of $1trn after next halving in May 2020, which translates in a bitcoin price of $55,000.”
Bitcoin being already near its stock-to-flow model value means it is well on its way to $55,000 and a trillion dollar value.
Major Bitcoin Buying Argument.
Commenting about how Bitcoin would react in a global recession, planB explains how it is difficult to say as Bitcoin wasn’t available in 2008 when the recession happened.
“In times of crisis people need money, so they sell stocks, bonds and .. bitcoin? Or bitcoin could be a safe haven like gold. And BTC has really strong Hodlers!”
Several experts have been calling out for another recession that could break out in the coming years, PlanB also pointed out how recently the yield curve inverted and whenever it happens, a recession follows so it is “likely very near.”
He further responds that the Fed and ECB will, in fact, go for “eternal QE/negative interest rates” during that time which he says is a major bitcoin buying argument.
So, in the next couple of years, we might get to actually see if people will sell bitcoin or invest in the digital gold like the yellow metal itself.
Bitcoin’s price is at a $5,382.78 BTC/USD exchange rate on 2 May 2019 . The real-time BTC market cap of $95.16 Billion currently ranks #1 with a chart dominance at 54.62%, daily trading volume of $3.81 Billion and live coin value change of BTC 1.49 in the last 24 hours.
- Source: First Appeared Here
- Published Time: 2019-05-02 14:53:34
The views and opinions expressed in the article Bitcoin Price is at $5,450 BTC/USD, Well on its Way to $1 Trillion Market Value per Stock-to-Flow Model do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research..
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