Model Demonstrates How Bitcoin Will Reach More Than $10,000 By 2020 Halving
Not even a little slump could slow the advance of Bitcoin price; analysts believe that it will still go beyond the sum of $10,000 by the time it reaches the next block halving. This is due to the projections of the stock-to-flow models.
The Importance of Stock-To-Flow
Data available shows a link between bitcoin reward halving and the price of bitcoin. The trend lined out very well by year and the countdown till the next halvening event which will come up in May 2020. The most crucial thing is that the price seemingly follows the stock-to-flow macroeconomic model.
Also, the SF model shows an upward trend in the price. Importantly, as the halvening is expected to slash the pressure to sell on the supply end, a reduction in the interest from sellers will trigger an upward climb from what obtains at the moment. But, the thing to point out here is that these trends are affected by a reduction in selling pressure instead of interest from buyers. It can also swiftly reach into overbought levels then subsequently followed by a sharp downside correction.
Countdown to the Halvening
Bitcoin block reward halvings happen at an average of every four years. Once the network halves, the network records a reduction in the mining reward by 50%. For now, the miners get a reward of 12.5 BTC anytime a block is mined. That number is expected to reach the halfway point of 6.25 BTC by May 2020. What this translates to is that the next halving event is less than 390 days. Many excited analysts and record watchers will be eagerly doing the countdown and awaiting the next event.
As was reported earlier, the Bitcoin price usually shows some rallying one year after the halvening effect occurs. As a matter of fact, there is a straight link between the price of bitcoin and the halvening event that cannot be just brushed aside. It is too important as one of the parameters that can be used in the study and analysis of trends. This research allows for the projection of the value of the Bitcoin Wallet, and as a result, investors can make better decisions.
In addition, other styles have also been utilized in order to assess the price of Bitcoin that elevates the price of Bitcoin even further. The only exception to this is when the projection is being made into the future. An example is when a $1 trillion market capitalization was predicted for Bitcoin. This is expected to be after the halving that is to happen in 2020. If this is the case and it happens as expected, the price of Bitcoin will hit $55,000 – this is definitely good news for those who want to buy Bitcoin BTC. But that is not even all; there is the possibility that the price of bitcoin can reach even beyond that in 2023 when an incredible rally can shift the price of Bitcoin to a shocking $10 million.
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InsideBitcoins.comhttp://bit.ly/2FUbkJa May 4, 2019 at 01:06PM @BruceDayne, @Ali Raza