Bitcoin Will Reach $1 Million by 2025
Bitcoin just had a historic week.
The currency went through its third halving, an event that effectively tightens supply and has historically preceded a rally.
In anticipation of the halving, investors drove the price of bitcoin up over 50% in the month leading up to it.
While that’s a big climb, it wasn’t shocking.
Sure, after bitcoin become the hottest topic within financial markets in late 2017, the price tumbled 84% over the following year, and many became doubtful of the currency’s worth.
But investors who truly understand bitcoin and its halving didn’t panic. We realized the price was still on the predicted trajectory.
In fact, when you look at one chart, you can see bitcoin is behaving just as expected. And that there are more climbs to come…
1 Chart Shows Us the Future of Bitcoin
A popular model called stock-to-flow has been used by experts to predict the future price of bitcoin.
Simply put, the model evaluates the existing supply against the newly mined bitcoin.
Since the halving schedule isn’t a secret, the stock-to-flow and price trajectory can be predicted. And the model’s performance has been very strong.
The chart below shows the stock-to-flow line and the price of bitcoin. Despite ups and downs, the price of bitcoin has continued climbing following the stock-to-flow line.
Now that the third halving has occurred, the price is expected to climb again — dramatically.
And the next halving will occur in 2024. If this pattern holds, bitcoin will reach $1 million by 2025!
Big Money Is Buying Bitcoin
Recently, we have seen big-name investors show interest in bitcoin.
Last month, Renaissance Technologies Llc., a $166 billion hedge fund, said it was considering adding exposure to bitcoin.
Paul Tudor Jones, a famous billionaire hedge fund manager, claimed we could be seeing the birth of bitcoin as a store of value.
When big money starts to invest, you should take notice.
Research Analyst, Automatic Fortunes