Bitcoin‘s halving is the reason for which such speculation surfaced.
The event will halve block rewards from BTC mining, and it could also push the coin to a brand new height, according to the latest reports.
The halving is said to have the ability to push BTC to $55k. Crypstoslate online publication mentioned Plan B which is a crypto quant that says the Bitcoin block rewards reduction event scheduled for May 2020 has the potential of bringing BTC to $55k.
The researcher cited by the online magazine mentioned above cited a scarcity valuation model, and he explained that he had modeled BTC’s future valuation via a stock-to-flow ratio (SF).
Keeping inflation in check
Right now, blocks are found every 10 minutes with a reward of 12.5 BTC.
This means that on a daily basis 1,800 new BTC worth of $9 million at $5,000 per BTC are being introduced into circulation.
Every four years there is a so-called halving event that occurs and cuts the reward in half.
The largest halving that is scheduled for 2020 will reduce the reward from 12.5 BTC to 6.25 BTC.
The same online magazine reports that “This process was intentionally built into Bitcoin to keep inflation of the cryptocurrency in check while creating scarcity around the asset.”
BTC bullish predictions
CNBC crypto bull Brian Kelly sees BTC reaching $6,000 as a target for short term.
The founder and CEO of crypto investment firm BKCM says he will call BTC overvalued when it hits $6,500 – $6,800.
Theres a perfect storm for BTC right now
– Democratic socialism
– MMT (Modern monopoly money theory)
– QE infinity
– 10k boomers retiring daily (entitlements skyrocketing)
– 2020 election
– US interest expense > tax receipts by 2022
– BTC halving in 2020
Never been more bullish
— Brendan Bernstein (@BMBernstein) March 29, 2019
“Sentiment has shifted here. All indications that we have – whether it be fundamentals, technicals, the quantitative analysis we do – all suggest that we probably have at least started to put in the bottoming process.”
There have been all kinds of bullish predictions regarding BTC’s price this year, and after the latest bulls, some of them might be right. We’ll have to wait and see.