U.Today is supported by its audience. When you buy through referral links, we may earn a commission.

Bitcoin Price to Hit $50,000 after Halving, Rather Than $100,000, Analyst Says

Thu, 01/02/2020 - 11:23
Yuri Molchan
Crypto analyst PlanB offers a different stock-to-flow model which suggests Bitcoin price is likely to hit $50,000, rather than $100,000
Cover image via 123rf.com
Put your crypto to work
  • $68.96

    Interest per week

  • $3585.7

    Interest per year

  • 4.15%

    Interest rate

Join Now!
Sponsored by Celsius.Network

As the next Bitcoin halvening is to take place in a few months (May this year), more people are beginning to talk about it and its possible impact on the price of the flagship cryptocurrency.

‘Halving is priced in correctly, markets are efficient’

The analyst PlanB believes that the halving is priced in and uses a stock-to-flow model to predict the price. However, he reckons that only 10 percent of market participants can understand this model and maths behind it.

On the chart, PlanB has used a lower figure for predicting the BTC price surge after the halving - $50,000, instead of $100,000 which is used here by many. He used monthly BTC market data in the formula.

However, the expert points out that whether one chooses a conservative model ($50,000) or an aggressive one ($100,000) is a matter of taste.

Image via Twitter

Similarly to gold, Bitcoin shows a very high stock-to-flow ratio thanks to the low issuance compared to the currency circulating supply. As time passes, the stock-to-flow ratio of BTC is expected to exceed that of gold, since the block rewards are going to decrease with each halving that remains.

This decade will bring half of the world to Bitcoin: Willy Woo

The cryptocurrency analyst Willy Woo has summarized the previous decade, saying that one percent of the world started using or/and investing in Bitcoin. The coming decade, he hopes, will ‘convert’ half of the world into the ‘Bitcoin faith’.

Bitcoin Price to Crash to Sub $1,000, Says ZenGo CEO, Sharing His Sarcastic Predictions for 2020

‘Bitcoin and Ethereum are best investments’

The crypto trader ‘Bitcoin Macro’ reckons that Bitcoin and Ethereum are the best crypto assets one can invest in. He calls Bitcoin the mothership of crypto and compares Ethereum with an ‘index fund for altcoins’.

His portfolio, the expert says, usually totals Bitcoin/Ethereum on a 50/50 ratio.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020
Tone Vays Says He's Bullish on Bitcoin (BTC). What Made Him Change His Mind?
COVID-19 Takes Enormous Toll on Zug's 'Crypto Valley': Survey
TOP 3 Price Prediction: BTC, ETH, XRP — When Will Short-Term Correction End?