Bitcoin over 90K after next halving, Bayern Bank predicts

  • by Ofeed Team
  • October 3, 2019, 13:16 AM
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Bayern LB Bank, one of the lenders based in the wealthy German province of Bavaria, released a report that came out with bold prediction for the price of Bitcoin, as it estimated an increase by ten times from current price by spring when the next Bitcoin block reward halving takes place. Against the backdrop of weaker monetary policies by central banks and constantly low interest rates, the attractiveness of gold, the traditional store of value, is growing again, as well as its price. The Munich-based bank points out that its appeal stems from the fact that the supply side cannot be randomly increased. At the same time, the limited annual production of new gold, flow, gradually adds to an already very large stock, which is inventory. According to this report, the advantage of the digital process is the ability of the digital design of encryption, through which the supply is designed in a way that causes the decrease of its stock flow-to-rise ratio faster, while gold, on the other hand, requires many years to achieve a high percentage in prices. The report predicts that Bitcoin could reach the price of $90,000 after the upcoming halving process, outshining the yellow precious metal. According to Bayern LB experts: "The harder bitcoin is, the higher the value … “If the stock-to-flow ratio in Bitcoin in May 2020 is included in the model, a sharp price of about $90,000 will emerge." "This would imply that the impact of the next half is barely determined in the current bitcoin price of about $8,000." Also, it indicated that the positive relationship between the market value of the currency with the high ratio of its supply, as confirmed by the historical price data available from the cryptocurrency exchanges. Calmness still dominates crypto market The cryptocurrency market has remained calm today, with prices moving within narrow ranges, waiting for a catalyst to set the next direction. As of 12:12 GMT, the Bitcoin rose 0.14 percent at $8,259, Ethereum moved in the same direction as it was 0.01 percent up at $177. Ripple and Litecoin were up by 1.14 percent and 0.25 percent respectively. The total market capitalization currently stands at $219.9 billion, with 24-hour trading volume of $43.8 billion, according to CoinMarketCap. Despite facing some selling pressure after hitting its highest level this year at $$1557 an ounce, gold prices still hold above the key level of $1,500 an ounce.

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