Bitcoin's $500,000 goal? The stock-to-flow model points to the peak!
According to the latest data, Bitcoin (BTC) has risen slightly by 0.66% in the past 24 hours, and the market price is hovering at $77,000. Although the increase is not large, Bitcoin has accumulated a 27.82% increase in the past month, and the taste of this bull market is getting stronger and stronger. The stock-to-flow model also appeared again. This forecasting tool revealed that Bitcoin's goal of reaching $500,000 in the next four years is by no means a fantasy.
Why is Bitcoin expected to hit $500,000?
On November 9, a mysterious analyst shared the latest forecast of the stock-to-flow model. Simply put, this model gives a price range based on the scarcity of Bitcoin-in the next four years, the average price of BTC may be locked at $500,000, and the forecast range is between $250,000 and $1 million. Although this goal sounds like science fiction, the red dot on the model chart shows that the current bull market is still in its early stages.
A number of potential positive factors are also fueling the trend: US Congressman Cynthia Loomis is proposing a Bitcoin bill. If passed, the US government will purchase 200,000 Bitcoins each year in the next five years; and Saylor, CEO of the well-known company Microstrategy, has also set a big goal, planning to purchase an additional $42 billion in Bitcoin by 2027. Analysts point out that the high-intensity demand of these "big whales" may push up market prices.
In addition, with the continuous influx of funds into the spot BTC ETF since Trump's election, the current inflow has reached $2.294 billion. In the next few months, these inflows may only increase and not decrease, which will have a lasting impact on Bitcoin demand.
Although history has not perfectly confirmed the model's prediction, the analyst believes that market volatility is the norm, and in the long run, the Stock-to-Flow model is still of reference significance. The seemingly bold goal of $500,000 may be the starting point for us to witness the legend!
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