Bitcoin Continues Rising Trend, Could It Reach $60,000 by August 2020 via Stock-to-Flow Metrics?
- Bitcoin may reach $60,000 next years, according to Stock-to-Flow ratio.
- The rise of Bitcoin would likely happen months after the halving.
Bitcoin has seen a lot of progress as a virtual asset and cryptocurrency in the last few years, but the market cap alone has seen a significant level of improvement in 2019. With higher consolidation, there are some analysts that believe a bear market is imminent, which would end up pushing the token beyond the level of success that it sustained in 2017.
Stock-to-Flow ratio is one of the main indexes that has been logging the price of BTC with fairly impressive accuracy through the years. With their recent analysis, it looks like the index is under the impression that Bitcoin could see $60,000 in valuation by August next year.
The model used for a commodity with the Stock-to-Flow ratio considers the number of assets available or in reserves, divided by how much of the asset is created on an annual basis. This ratio is a necessary part of the market because the higher value found in S2F show that the asset sees a reduction in inflation occurrence on an annual basis.
Overall, Bitcoin has been an asset that has shown a high stock-to-flow ratio over the last few months, which seems to have been due to
“low issuance relative to its current supply.”
Furthermore, the Stock-to-Flow index has seen recent reports that indicate that it might be responsible for how the market has been attracted to Bitcoin lately, which is even more important when considering how close the asset is threading to gold. In fact, it has already passed Silver, Palladium, and Platinum.
With this suggested price increase coming, it is possible that the index is considering the Bitcoin halving that would come around in May 2020. With this halving, the Bitcoin that would be minted afterward would end up driving up the price of the asset.
This chart indicates that the predicted index for S2F after the halving takes place is at 55.92, which would show how close Bitcoin’s value is to Gold.
A reputed analyst named PlanB stated that Bitcoin stands to reach the $1 trillion market cap in the next nine years, based on the Stock-to-Flow ratio model.
Based on information from CoinMarketCap, Bitcoin’s current price is $9,075.10, rising by 2.81% in the last 24 hours.