Bitcoin's Price Will Increase Tenfold After Its Halving, Popular Analyst Predicts

Francisco Memoria

Cryptocurrency analyst PlanB has predicted the price of bitcoin could increase tenfold after the cryptocurrency’s block reward halving, as the event will “make-or-break” his prediction model.

The mode the popular pseudonymous analyst uses is the known stock-to-flow (S2F) model, which is a measure for predicting the price of the cryptocurrency based on its existing supply and the number of new coins being minted. Bitcoin’s S2F is more readily available when compared to that of precious metals such as gold, as new coins enter the market at a fixed interval.

After the March 12-13 cryptocurrency market crash, that saw the price of bitcoin drop by around 40%, the analyst claimed the model was still valid as despite the crash BTC remained within its range.

As CryptoGlobe reported, PlanB has predicted, back in February, the price of the flagship cryptocurrency could “overshoot” the $100,000 mark, while adding he believes the risk associated with it is “overestimated.”

It’s worth noting that the bitcoin halving will see block rewards on the cryptocurrency’s blockchain drop from 12.5 BTC to 6.25 BTC per block, which some analysts say will help its price grow because demand is maintained while supply is suddenly cut in half. Others argue the price may barely change, as the halving may be already priced in.

Notably institutional investors are already entering the market, as crypto asset manager Grayscale Investments recorded a record first quarter this year, with over $500 million inflows. About 88% of the funds, Grayscale reported, came from institutional investors.

Featured image via Unsplash.