Bitcoin Is Expected To Surpass $90K, According To Critical Indicator
Bitcoin is in the middle of a massive correction that has a lot of crypto enthusiasts freaking out these days.
On the other hand, this did not stop all kinds of optimistic predictions from popping up.
German bank predicts bright days for Bitcoin (BTC)
For instance, one of the biggest banks in Germany has just released a massive Bitcoin price prediction.
The Munich-based Bayern LB revealed that a critical 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 predict the price of precious metals such as gold.
It does this by calculating the current supply divided by the amount that is produced on a yearly basis.
“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,” the report says.
The notes continue and explain that “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).”
We recommend that you check out the complete report.
At the moment of writing this article, Bitcoin is trading in the green on CMC and so are the other most important coins in the market.
BTC is currently trading at $8,345.60.
More bullish BTC predictions surface
Speaking of optimistic predictions regarding the price of BTC, a senior analyst from Bloomberg just made a Bitcoin-related forecast.
Mike McGlone said that BTC managed to hit its very first solid support zone since back in May.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.