Key Takeaways
- PlanB anticipates Bitcoin's average cycle price could reach $500,000.
- Trump's proposed national Bitcoin reserve will add market pressure.
- MicroStrategy's $42 billion Bitcoin buy supports bullish trends, according to PlanB.
Bitcoin closed October at $70,000 but hit $76,000 shortly after Donald Trump’s re-election, marking a new all-time high.
According to PlanB, this surge aligns with the Stock-to-Flow model, which predicts sharp price increases post-halving events.
Bitcoin’s average price for the 2024-2028 cycle could reach $500,000, with a projected range from $250,000 to $1 million, according to PlanB.
Stock-to-flow
PlanB’s Stock-to-Flow model has provided a rough forecast for Bitcoin since 2019.
Despite slight variances, the model’s prediction accuracy falls within the expected range, according to PlanB.
The current cycle (2024-2028) projects Bitcoin’s value to rise significantly, and past cycles suggest an upward trend.
Trump
Trump’s re-election has fueled further optimism, given his proposed national Bitcoin reserve plan aiming to acquire 1 million Bitcoin over five years.
This buying pressure, along with MicroStrategy’s newly announced $42 billion Bitcoin investment, adds substantial market demand.
PlanB also cited significant inflows into Bitcoin ETFs, which further support the price increase trend.
Market indicators show bullish trends
According to PlanB, other metrics like the Bitcoin Relative Strength Index (RSI) and realized price indicators confirm an uptrend.
The RSI is currently at 69, indicating momentum, and rising realized prices across all metrics signal a bull market phase, according to the analyst.
