Reviving Pricing Models as Bitcoin Holds Above $40,000
Bitcoin’s sustained position above $40,000 has brought previously disregarded pricing models back into focus. The stock-to-flow (S2F) model, which calculates Bitcoin’s value based on scarcity, predicts a top price of $532,000 after this year’s halving. Despite skeptics deeming it impossible, the model’s creator, “PlanB,” remains confident in its accuracy.
MN Trading CEO Michaël van de Poppe supports the possibility of Bitcoin reaching such heights due to institutional involvement in the market.
Bitcoin to The Moon?
The S2F model was published in March 2019 and assesses Bitcoin’s value by analyzing supply production and available stock. Recent data shows that BTC prices have returned to the S2F line, reinforcing the model’s predictions.
According to PlanB, the current value of the S2F model is between $50,000 and $60,000, with prices just below that range. He anticipates further price increases towards $50K to $60K in the next few months leading up to the halving.
BTC Price Outlook
In the short term, Bitcoin prices are experiencing a slight dip and are currently at around $43,577. The $44K to $45K range has been a strong resistance level for the past month. However, positive news regarding spot Bitcoin ETF approvals from the US Securities and Exchange Commission could potentially push the asset higher.
Hot Take: Is Bitcoin Headed for New Heights?
With Bitcoin holding steady above $40,000 and pricing models like S2F predicting astronomical figures for its future value, there is growing speculation about whether Bitcoin is on its way to new heights. While skeptics argue against the feasibility of these models, proponents point to institutional involvement and historical data that supports the potential for significant price increases. As Bitcoin continues to make headlines and capture the attention of both investors and enthusiasts, only time will tell if it will reach the predicted levels of success.
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