Bitcoin could compete directly in the first weeks of the new year. The BTC price rose in the first days of January to more than 25% and could leave the 9000 USD limit behind. Since a few days, BTC is sideways and thus offers a lot of room for some of the Altcoins, some of puts extreme rate increases down. How goes it now with BTC? Is valid, the Stock-to-Flow model, or we must discard the model? Let us look at briefly the Status Quo of Bitcoin.
BTC soon so ‘hard’, such as Gold
The Bitcoin Halving is probably the most important event of BTC. Every four years, or better said, every 210,000 blocks, the reward for the Miner per Block found is reduced to half. This has in the past led to massive price rises in the aftermath. The next BTC Halving before us in may of this year (about 96 days). Therefore, the interest in BTC and the major Event is increasing day by day.
There are various forecasts, such as the BTC price, during and after the Halving behavior. The best model has established up to now, PlanB, and has already won several awards for it. Even the Bayern LB has taken up the model to assess the future price development of BTC. In the model, it’s about how ‘hard’ a particular Good. So how well can a value store, and how strong it will be diluted by Inflation.
This can be relatively good sized, by taking the currently available quantity and sets you up with Inflation, this time into the relationship. Thus, it is easy to get out, how long it would take to reach the Inflation of the already existing lot. This ratio is also used in Gold and silver. Currently, BTC is already ‘harder’ than silver, and after the Halving in may, almost as ‘hard’ such as Gold. In 2024, so at the next Halving, Bitcoin will be even rarer than Gold.
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Bitcoin price is above the current Stock-to-Flow model
PlanB has not used this Model only to determine the ‘hardness’ of the asset, but to couple to a possible price development in mind. Some of them are unimaginable rate forecasts are created, which many dream of. So, it was said that the BTC price will reach this year the 55,000 USD, and by 2025, 1 Million USD per Bitcoin crack.
If this will occur, which, of course, not to say but there are more factors, than a theoretical model. Nevertheless, the model is consistent up to the current time relatively accurately, and is thus still conceivable. A few months ago, we were still under the Stock-to-Flow model. So the BTC price was lower than the should be at this time according to the model.
The model is rather a tendency than a precise course for a specific point in time. Therefore, there are also certain variations and tolerances. Therefore, the low rate of approximately $ 6,500 was still valid for the Stock-to-Flow model. Currently we are moving but on the price Stock-to-Flow model, which is certainly a good sign.
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The price will be according to the model in the 10-day average, currently at 8.958 USD and in the 365-day average 8.208 USD. Nevertheless, the current price has relatively little explanatory power, whether the model will actually continue to arrive and we can count on with astronomical rates. Therefore, we can reject us at this point, only back and wait to see how the BTC price in the next few months will develop. Nevertheless, it is a positive sign that the Stock-to-Flow expectations have come true. It will continue to be exciting.
BTC is the Stock-to-Flow model? Can we expect until the end of the year, with a Bitcoin price of over $ 50,000?
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