One of Germany’s biggest banks just released a massive Bitcoin price prediction.
According to Munich-based BayernLB, a key indicator shows BTC is on track to hit $90,000 after its next halving.
The report is based on Bitcoin’s stock-to-flow ratio, which is often used to forecast the future price of precious metals like gold by calculating the current supply divided by the amount produced per year.
“What is certain is that Bitcoin’s stock-to-flow ratio will increase drastically in May 2020 – i.e. after the next halving – from around 25.8 at the moment to almost 53. By contrast, gold’s stock-to-flow ratio (currently in the vicinity of 58) will only be insignificantly (if at all) higher next May.
If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges. This would imply that the forthcoming halving effect has hardly been priced into the current Bitcoin price of approximately USD 8,000 (the current model value is roughly USD 7,500).” Read More...