Prominent Bitcoin analyst PlanB recently updated his prediction for Bitcoin’s high in 2025.
PlanB’s new prediction places this new level at $1 million come 2025, which is a significant increase from his previous estimate of $100,000.
Prediction Model
This Bitcoin prediction model, introduced by PlanB in 2019, uses the scarcity of Bitcoin to estimate its future price.
The model compares and weighs the current market capitalization of Bitcoin in circulation to the annual flow of new coins being mined.
The higher the stock-to-flow ratio, the more scarce and limited the asset appears, and the higher its price.
According to PlanB’s updated model, the stock-to-flow ratio of Bitcoin will continue to record increases as mining takes place and fewer new coins are added to the supply.
This scarcity, accompanied with rising demand for the digital asset, will drive the price of Bitcoin to $1 million in 2025.
PlanB’s prediction stirred a lot of buzz in the cryptocurrency community, with many calling it ambitious and bold.
However, PlanB remains bullish and confident in his prediction, citing the accuracy of the stock-to-flow model in the past and the increasing adoption of Bitcoin by firms in various sectors as evidence.
Institutional investors, including major banks and asset managers, are increasingly diving into the cryptocurrency space and utilising Bitcoin as a safe haven asset against inflation.
This institutional interest has acted as a catalyst driving the price of Bitcoin upward, and it is expected to keep up this upward momentum.
Massive Adoption Can Make This Feasible
PlanB’s prediction also comes at a time when central banks around the world are generating massive amounts of funds to help their economies, which in turn hikes inflation rates.
Bitcoin, as a decentralized asset with a limited supply, is seen as a safe haven against inflation and a shelter for investors.
However, it’s important to note that PlanB’s prediction is just that – a prediction.
The cryptocurrency market is highly volatile and unstable, and the price of Bitcoin can be influenced by a number of factors, including regulations, illicit activities and bankruptcies.
This prediction for Bitcoin’s high in 2025 has gained a lot of attention and engagement in the community.
There is no guarantee that this prediction will come to fruition, however, due to the increase in adoption by firms and inflation concerns pushing investors to turn to cryptocurrencies, these may be the needed catalyst to make it happen.
Whether or not Bitcoin reaches the $1 million mark in 2025 remains to be seen, but one thing is for certain – the future of cryptocurrencies is an exciting and rapidly evolving space, and it will be interesting to see how it develops in the coming years.
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