Originally published on: November 09, 2024
In a surprising turn of events, Bitcoin has soared past $76,000 following Donald Trump’s win in the United States presidential election. This surge has put PlanB’s stock-to-flow model in the spotlight, with a projected price target of $500,000 for the cryptocurrency in the upcoming four-year cycle.
The renowned Bitcoin analyst PlanB attributes this remarkable growth to Trump’s proposal to establish a national Bitcoin reserve, potentially adding significant buying pressure of “200,000 BTCs per year.” With history and the stock-to-flow model as his guide, PlanB anticipates sharp price increases ahead.
The stock-to-flow model evaluates Bitcoin’s worth based on its limited supply and halving events, suggesting substantial price growth after each halving. While PlanB expects Bitcoin to hit $500,000 in this cycle, he acknowledges a broad range between $250,000 and $1,000,000 per BTC.
Moreover, the new Trump administration is poised to drive institutional adoption of BTC, with Senator Cynthia Lummis advocating for a Bitcoin reserve akin to the gold reserve. There are speculations about an executive order that could allocate federal funds for Bitcoin acquisition, potentially establishing a new reserve standard.
Notable companies like MicroStrategy have also announced ambitious plans for Bitcoin acquisitions, with CEO Michael Saylor committing to purchasing 200,000 BTC per year over the next three years.
Interestingly, concerns have been raised about a deceptive trading practice called “spoofing,” observed during Bitcoin’s recent peak at $77,270 on Bitstamp. This tactic, which floods the order book with liquidity and then withdraws it abruptly, has raised eyebrows in the crypto trading community.
Despite massive inflows into Bitcoin, many traders are puzzled by the absence of the coin’s usual aggressive upward trend, raising fears of a potential long squeeze in the market.
As Bitcoin continues its meteoric rise, the crypto landscape remains as dynamic and unpredictable as ever. Stay tuned for more updates on the latest crypto trends and developments.
