The Bitcoin Bullrun is unstoppable in 2021. After a short correction phase, the most popular coin is close to the $60,000 mark again, as data from CoinMarketCap shows.
Many Bitcoin enthusiasts and market analysts see ever-increasing prices for 2021. While BTC enthusiasts often rely on a gut feeling, analysts and market modelers leave nothing to chance. Using price movements, data from past years, and other influences, they create models that can provide forecasts about future price developments.
The Dutch market modeler and inventor of a Stock-to-Flow (S2F) model PlanB predicts that the Bitcoin Bullrun will last at least a few more months and bring record all-time highs.
S2FX Model: Bitcoin Bullrun at $288K in December?
In social networks, there has been much discussion about the latest BTC developments. How was mentioned before, PlanB now predicts an average price of $100K a new all-time high in December of $288K.
‘We are only 3.5 months in the Bitcoin bull market’, continues PlanB. According to the extended stock-to-flow cross-asset (S2FX) model, the expected all-time highs will be even higher.
The model is based on a so-called ‘halving cycle’, i.e. the time from one halving event to the next. Bitcoin halving takes place every 210,000 blocks — approximately every four years. Halving reduces the number of bitcoins a miner receives for verifying transactions by 50 percent. Accordingly, the amount of Bitcoin generated by the network decreases. When there are high demand and less supply, the price also rises.
If you look at the history of the Bitcoin price, you can see that new all-time highs were reached around a year before and after the last Bitcoin halving. The last BTC halving took place in May 2020, so a new peak should appear in around two months.
Institutional Investors Support the Bitcoin Bullrun 2021
It’s not a surprise that high demand is the basis for rising prices. MicroStrategy was the first publicly-traded company to enter the market. Only recently, the software manufacturer generated around one billion US dollars from the sale of convertible bonds in order to buy more bitcoins.
At the beginning of this year, the electric car manufacturer Tesla entered the market with an investment of 1.5 billion US dollars. Thus, it also sparked interest in the crypto market among other institutional investors. According to the Bitcoin Treasuries website, Tesla is now the second-largest Bitcoin institutional investor.
While the focus has so far been on US companies, more and more institutions from other countries are also entering the crypto market. The Chinese manufacturer of photo and video editing software, Meitu, has recently invested in Bitcoin and Ethereum. Meitu is the first Asian listed company to invest in cryptocurrencies.
The confidence, that institutions give to Bitcoin and other cryptocurrencies, leads to the corresponding boost. The news about Tesla’s investment even caused a new all-time high.
We’ll witness the Bitcoin Bullrun throughout 2021. Signals from all directions point to further price increases and new all-time highs.