Bitcoin has demonstrated a noteworthy performance, gaining 0.66% over the past 24 hours and edging close to the $77,000 mark, according to CoinMarketCap data. This minor uptick builds on a significant monthly increase of 27.82%, signaling the advent of a potential crypto bull season. In this context, the renowned Bitcoin Stock-to-Flow model suggests an ambitious price target for the leading digital asset.
On November 9, a pseudonymous analyst, widely known as PlanB and the developer of the Stock-to-Flow model, shared an optimistic prediction for Bitcoin. The Stock-to-Flow model, which predicts BTC’s price based on projected scarcity, currently forecasts that Bitcoin could reach an average market price of $500,000 within the next four years, with a possible range of $250,000 to $1 million.
PlanB describes the current bull season as still in its infancy, as indicated by the model’s chart despite recent rallies driven by Donald Trump’s electoral victory and a temporary setback witnessed in Q1 2024 following the launch of the Spot Bitcoin ETF.
Bitcoin’s future potential is underpinned by several upcoming events. Trump’s proposed National Bitcoin Reserve, supported by Senator Cynthia Lummis’s Bitcoin Act, aims to secure 200,000 BTC annually for the next five years. Additionally, Michael Saylor’s Microstrategy plans to accumulate $42 billion worth of Bitcoin by 2027. These large-scale acquisition strategies are anticipated to create substantial buying pressure, likely driving BTC prices higher.
Moreover, the Spot Bitcoin ETFs have seen significant inflows, amounting to $2.294 billion since Trump’s election, a figure that is expected to increase and further boost Bitcoin’s demand. PlanB urges investors not to doubt the Stock-to-Flow model, despite Bitcoin reaching only an average price of $34,000 in the last cycle, lower than the predicted $55,000. The model anticipated a price target range of $25,000 to $100,000, thus maintaining its relevance.
Currently, Bitcoin trades at approximately $76,745, reflecting an 11.85% increase over the past week. However, its trading volume has decreased by over 40% in the last 24 hours, dropping to $28.33 billion.
