Bitcoin Cryptocurrency

BayernLB Says Bitcoin Could Rally Up To $90,000

Ever since the evolution of crypto markets, Bitcoin (BTC) price analysis has been the center of attention for experts from all over the world. In all honesty, a deep interest of the traders and analysts in BTC is well earned owing to its high volatility with the prices touching an all-time high of around $20,000 at the end of the year 2017 while dropping back to as low as around $5000 in the next year.

BayernLB Report Expects A Major Leap In BTC Price Next Year

An imminent rise in Bitcoin’s price has been predicted by numerous financial experts from across the globe. But none of the forecasts compare to what has recently been announced by the German Bank, BayernLB. The bank has published a report that primarily compares Bitcoin with Gold and predicts that the investors should be ready for the price to significantly rally up once again in the year 2020.

Bitcoin is currently trading around the $8300 level. According to the BayernLB report, however, the upcoming halving effect is likely to present a bullish trend in Bitcoin unlike any other that has been experienced so far.

It was further highlighted in the report that the high stock-to-flow ratio seen in Gold was a gradual development that spanned over the years. On the other hand, Bitcoin is already close to achieving the same milestone. In the year 2020, BTC is expected to present somewhat of a same stock-to-flow ratio that will strengthen the forecast of the price rallying up in the upcoming year.

Implications Of The Stock-To-Flow Ratio

The stock-to-flow ratio is a quantitative measure that represents the hardness of any given asset, as per Mr. Manuel Andersch, senior analyst for the forex market at BayernLB. It is because of this reason why the commodities which had the greatest stock-to-flow ratio has always been used as money throughout history. In simpler words, the higher the stock-to-flow ratio of an asset, the better is the probability of its value to pass the test of time.

In light of the stock-to-flow ratio of the Bitcoin, Mr. Andersch claimed that once it is factored in the price, BTC has the potential to rally up as high as $90,000 in the year 2020. The analysis, however, is by no means universal as Mr. Peter Schiff has already claimed the recent drop in the price of Bitcoin from $9700 to $7900 as a new beginning. Pointing at the break of BTC price below a major descending triangle (strong support), Mr. Schiff interprets it as an upcoming long-term bearish trend with the next major fall to $4000 level in sight.

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