Bill Barhydt, the CEO of digital payments platform Abra, has predicted the price of bitcoin could move up to $250,000 if corporations keep on buying BTC, presumably as a supply squeeze would force the price to exponentially go up.
In an episode of the “What Bitcoin Did” podcast with Peter McCormack, first reported on by Daily Hodl, Barhydt revealed that in the short-term he is, however, bearish, as he sees bitcoin face resistance at $60,000 before plunging into a massive correction.
Per his words, a 30% pullback hasn’t been seen since the price of bitcoin hit $42,000 and then plunged to $34,000 before the cryptocurrency’s price kept climbing, and as such “we’re due” for another large correction. Barhydt sees BTC “top out just below $60,000 and then easily fall 30%.”
That drop, he said, “would actually wind up the rubber band to probably go to $85,000 to $90,000.” It’s worth noting that according to CryptoCompare data, the price of bitcoin hit a new all-time high above $58,000 and has since dropped back to $53,000 at press time.
The CEO then pointed to bitcoin’s stock to flow (S2F) model, claiming the price could hit $90,000 by August, which the model predicts. Despite being a bear in the short-term, Barhydt noted that the cryptoasset has massive upside potential in the future.
Pointing to PlanB’s two S2F models, he said bitcoin could hit $100,000 by the end of the year and stay there for 24 months basically,” while the other model suggests the price could hit $250,000 this year. The stock to flow model, it’s worth noting, measures the ratio between the amount of BTC circulating and the amount of new coins being minted.
Barhydt reminded listeners he predicted the price of bitcoin could be at $100,000 by the end of this year, but noted that if more companies announced BTC investments, his prediction could be pushed up significantly:
I still think that’s right but I think that if we get a bunch of other Fortune 500 companies making announcements like Tesla, that is going to push this up to a quarter of a million very quickly.
Tesla, as CryptoGlobe reported, announced this month it invested $1.5 billion into bitcoin, and is expecting to accept the flagship cryptocurrency as a payment option in the near future.
Featured image via Pexels.