🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

Crypto Analyst Believes $200K For Bitcoin Would Be 'Underwhelming', Predicts King Crypto To Reach $500K By 2025

Published 03/04/2024, 12:29
Updated 03/04/2024, 13:40
© Reuters Crypto Analyst Believes $200K For Bitcoin Would Be 'Underwhelming', Predicts King Crypto To Reach $500K By 2025
BTC/USD
-

Benzinga - A pseudonymous cryptocurrency analyst PlanB said that Bitcoin (CRYPTO: BTC) is on the cusp of a breakout, potentially reaching $500,000 by 2025.

What Happened: PlanB in a YouTube video said that it would be disappointing if Bitcoin’s price were to peak at $200,000 within the ongoing market cycle.

The analyst’s viewpoints are grounded in the stock-to-flow model, a tool often used for predicting the future value of commodities. This model assesses the current supply of a commodity against the amount being produced annually.

PlanB shed light on the implications of the model for Bitcoin’s trajectory: "So the next top will not be in this year, 2024, but in next year, 2025. That top – some people talk about $200,000 as the next top. You can see on this chart [below] that that would be very underwhelming."

See More: Best Cryptocurrency Scanners

The analyst is anticipating a surge of over 660% increase from present-day prices before the end of the bull market. “In fact, from a stock-to-flow perspective, we need a top that's much higher than the average $500,000. So let's say $600,000 [or] $700,000 maybe or a $1,000,000… So the top will be higher than $500,000 in 2025."

Another pseudonymous analyst Rekt Capital also suggested that BTC is on the cusp of reaching a record-breaking high.

Rekt Capital points out that Bitcoin has successfully passed the initial stage of this breakout by closing the last week of March above a critical resistance level at $69,000.

According to the analyst’s observations, the final phase for Bitcoin to cement its breakout status involves converting the $69,000 resistance point into a new foundational support level.

The process is described by Rekt Capital: "Weekly close above the range high (RH) is the 1st step. And if BTC needs to dip into the RH to successfully retest it as new support before continuing higher… That would be the 2nd step to fully confirming the breakout."

Why It Matters: This comes as Bitcoin grapples with minor losses trading below $67,000 levels.

Market participants are weighing up the impact of renewed U.S. Treasury yields, which saw the 10-year note hitting a two-week high of 4.40% owing to lingering inflation concerns and robust manufacturing data. Heightened yields normally prompt a reallocation of investment away from riskier assets, including cryptocurrencies and tech stocks, towards so-called ‘risk-free’ options

Price Action: At around 4 am ET, BTC was trading up 0.12% at $66,559.819, according to Benzinga Pro.

Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?

Image by Leonid studio on Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.