The renowned crypto analyst PlanB sees Bitcoin on its way to new all-time highs. Based on his proven and now revised Stock-to-Flow model, he forecasts an average price of $500,000 for the upcoming halving cycle.
Bitcoin Reaches New All-Time High After U.S. Elections
Bitcoin has surged following the U.S. presidential election, reaching a new all-time high of $90,000. The well-known crypto expert PlanB, famous for his Stock-to-Flow model, emphasizes that this is just the beginning of a potential strong upward trend. “The months-long trading range between $60,000 and $70,000 has been broken,” PlanB stated in his latest prediction update.
Stock-to-Flow Model: Average Price of $500,000 Expected
PlanB's Stock-to-Flow model, which correlates Bitcoin's scarcity with its price, shows an exciting outlook for the coming years. For the halving cycle from 2024 to 2028, he predicts an average price of $500,000. “With a standard deviation range of $250,000 to $1 million, the model is not exact, but the historical accuracy is impressive,” PlanB explains.
Compared to the last cycle, in which the average price was $34,000—slightly below the forecasted mark of $55,000—the focus this time is on significantly higher values. “The price has so far moved well within the range of $25,000 to $100,000. We expect the same for the next cycle,” he added.
Pro-Bitcoin Policy Under Trump Generates Buying Pressure
The re-election of Donald Trump, a known Bitcoin advocate, has also had positive effects on the Bitcoin price, according to PlanB. Trump plans a national Bitcoin reserve similar to the U.S. gold reserve, aiming to accumulate 1 million Bitcoins over the next five years. This would create significant buying pressure of 200,000 Bitcoins per year.
Additionally, Michael Saylor from MicroStrategy announced a $42 billion purchasing program to be implemented over the next three years. This also involves buying 200,000 Bitcoins annually. “Moreover, substantial funds are flowing into ETFs, especially after Trump’s election,” PlanB noted.
Conclusion: An Exciting Time for Bitcoin Investors
With a combination of the Stock-to-Flow model, proactive Bitcoin policies, and strong technical indicators, the Bitcoin market is poised for significant gains. PlanB’s forecast of an average price of $500,000 for the upcoming halving cycle offers crypto investors an optimistic outlook.
While the model includes fluctuations, the fundamental premise remains: Bitcoin could further solidify its status as digital gold in the coming years and reach new all-time highs.
