The world of cryptocurrencies is unpredictable and ever-so-changing. Predictions and speculations of blockchain enthusiasts have always seen a welcoming applaud from the domain of virtual currencies.
Bitcoin, being the first revolutionary virtual currency has always been the favorite subject of discussion for the financial heads. A renowned technical and fundamental crypto analyst known by the name of FilbFilb announced his speculation about Bitcoin’s future.
The analyst said that he has a strong belief that Bitcoin will see an all-time high surge before executing its next halving which is slated to happen in May 2020.
According to FilbFilb, the stock-to-flow ratio of the notable crypto coin serves as a crucial base for drafting out BTC’s future.
Assuming that there is no systemic shock either via heavy regulatory enforcement or a global recession, I am of the view that we will see a continuation of what has been observed to date; Bitcoin will move through its next cycle at an increased pace to what we have seen previously.
I am expecting Bitcoin to break all-time highs for the first time in advance of the Halving. The Stock to flow model which I discussed last week, which I have illustrated on the chart and I recommend that you review (see @100trillionUSD on twitter) implies that Bitcoin will be worth around $100k from May 2020. It has been the best valuation model for Bitcoin to date.
With that in mind it seems reasonable that we will see continued accumulation which will ultimately lead to a supply shortage and a significant jump in the Bitcoin Price.
Earlier this year, BTC’s stock-to-flow ratio made its way to CNBC where anchor Joe Kernen mentioned about its exploding popularity.
Stock-to-flow ratio is an index that evaluates the amount of an asset held in inventories or stock in relation to its annual production rate.
FilbFilb added that the current parabolic bull run of Bitcoin will be the last critical situation for the leading cryptocurrency.
The popular analyst further stated:
I’m fairly stubborn in my view that this is likely to be the last big Bitcoin Bubble and the reason is that if Bitcoin can realize a trillion USD market cap and maintain it without dramatic regulation, it will have arrived on the world stage as a legitimate store of value.
The value proposition will largely be understood if this is to occur and price should become more effective. Price discovery will no longer be leading dramatic boom-busts; 85% selloffs and 10x annual gains. These are most likely to be a thing of the past, with this asset tapering off into a steady annual return proposition beyond this cycle, which is exactly what should happen if the market really is becoming efficient in its pricing mechanism.
While this all sounds great, it is largely educated guess work and should be treated as such. Should there be a big USA or EU bans Bitcoin event or similar, there is no doubt in my mind that the impact on price would be devastating. Similarly, if there were to be a coding issue, we would also see a significant sell off, possibly irrecoverably so.