BayernLB Bank has produced a report entitled “Megatrend Digitalisation – Is Bitcoin outshining gold?” in which the price of the crypto is expected to reach $90,000.
As BayernLB Bank’s analysis shows, the price of bitcoin will reach this level next year, more specifically in the proximity and after the halving that will take place in the period of May 2020.
“What is certain is that Bitcoin’s stock-to-flow ratio will increase drastically in May 2020 – i.e. after the next halving – from around 25.8 at the moment to almost 53. By contrast, gold’s stock-to-flow ratio (currently in the vicinity of 58) will only be insignificantly (if at all) higher next May. If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges”.
Also according to BayernLB Bank, bitcoin could overtake gold as a safe haven asset. According to the financial institution, BTC plays the role of a store of value.
Finally, the report raises the bar making a forecast for the next halving that will take place in 2024: the rate against gold may have a ratio of over 100. Currently, it is close to 58.
The analysis on bitcoin is rather optimistic:
“In 2024 (when the next halving is due to take place), its degree of hardness will inexorably increase even further, to a level unprecedented in human history”.
However, it is difficult to predict the long-term trend of bitcoin, but many have already expressed similar figures. As stated by John McAfee a few days ago, the price of bitcoin could even reach as much as $1 million.