Bitcoin price to reach $55,000 after 2020 halving?
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According to data shown by a well-known Bitcoin market analyst PlanB, Bitcoin prices might reach $55,000 sometime around 2020 or 2021 after halving in May 2020.
“Every halving, bitcoin [stock-to-flow] doubles and market value increases tenfold.”, claims PlanB. “This is a constant factor.”
A very interesting analysis has been presented on Medium, where PlanB predicts Bitcoin’s market value to reach 1 trillion dollars!
“The predicted market value for Bitcoin after May 2020 halving is $1trn, which translates into a price of $55,000 per token.”, he states.
After halving, Bitcoin rewards for mining a block will be reduced from 12.5 to 6.25 BTC. This leads to a reduced speed of production of Bitcoin supply (capped at 21 million) and potential massive implications related to the Bitcoin price.
Let us recall that the last Bitcoin halving occurred in summer 2016 and after that Bitcoin price started its rapid pace to reach the overwhelming all-time high of $20,000 in December 2017.
According to the analysis, the upcoming halving is likely to cause the Bitcoin stock-to-flow valuation to be close to the price of gold!
“Next halving is May 2020. Current SF of 25 will double to 50, very close to gold (SF 62). The predicted overall market value of Bitcoin after May 2020 halving might reach $1 trillion, which translates to a Bitcoin price of $55,000 per token. That is quite spectacular. Time will tell and in a year or two after the halving, in 2020 or 2021, we’ll see how good these predictions were. A great test for this hypothesis and model of thinking…
People ask me where all the money needed for $1 trillion bitcoin market value would come from? My answer: silver, gold, countries with negative interest rates (Europe, Japan, US soon), countries with predatory governments (Venezuela, China, Iran, Turkey etc), billionaires and millionaires hedging against quantitative easing (QE), and institutional investors discovering the best performing asset of the last 10 years.”
What is your prediction of Bitcoin’s price after May 2020? Tell us in the comments!