Originally published on: November 09, 2024
Bitcoin has skyrocketed to over $76,000 in the wake of Donald Trump’s win in the United States presidential election on Nov. 5, stirring excitement among cryptocurrency enthusiasts.
Analyst PlanB has set an ambitious $500,000 price target for Bitcoin, using the stock-to-flow model that analyzes historical data and patterns to predict future prices. The model’s projections suggest significant price growth for the asset within the next four-year cycle.
PlanB believes that Trump’s proposal to establish a national Bitcoin reserve could drive up demand for the cryptocurrency, potentially adding “200,000 BTCs per year” in buying pressure.
“With the stock-to-flow model as our guide, we are likely to witness substantial price surges ahead,” the analyst stated confidently.
The stock-to-flow model relies on Bitcoin’s limited supply and periodic halvings to estimate its value, indicating substantial price appreciation after each halving event.
While PlanB is optimistic about Bitcoin reaching $500,000 in this cycle, he acknowledges a broad range of possibilities, from $250,000 to $1,000,000 per BTC.
The upcoming Trump administration is anticipated to stimulate institutional involvement in BTC, with Senator Cynthia Lummis advocating for a BTC reserve akin to the gold reserve.
Furthermore, the new administration is considering issuing an executive order to allocate federal funds for Bitcoin acquisition, potentially setting a new reserve standard.
PlanB also highlighted the significant BTC acquisition plans of companies like MicroStrategy, whose CEO Michael Saylor intends to purchase 200,000 BTC annually over the next three years.
In a recent post on Nov. 8, trader Skew raised concerns about the deceptive practice of “spoofing” in order books, a tactic prohibited in traditional markets but prevalent in crypto trading. This practice was suspected during a recent spike in BTC price to $77,270 on Bitstamp.
Despite substantial inflows and market activity, Bitcoin’s historic upward momentum has not been evident, fueling worries of a potential long squeeze among traders.
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