The German bank BayernLB has predicted a big jump of Bitcoin price in 2020. The info was published in the Munich-based bank’s latest research report on Oct 1.
According to the report, gold had to earn its high stock-to-flow ratio “the hard way over the course of millennia.” Bitcoin will most likely succeed to obtain a similar stock-to-flow ratio to that of gold in the coming year, the report predicts.
Stock-to-flow ratios are a a way to quantify the “hardness” of the asset. The report said that the Bitcoin’s stock-to-flow ratio is certain to substantially increase in May 2020.
“If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges. This would imply that the forthcoming halving effect has hardly been priced into the current Bitcoin price of approximately USD 8,000,” Senior FX analyst at the Bayerische Landesbank Manuel Andersch said.