The debate over Bitcoin’s market strength continues, yet one analyst has released data indicating that investment in the flagship cryptocurrency has been considerably more substantial than previously thought. If true, it indicates that Bitcoin’s price could soon rise dramatically.
MILLIONS ADDED TO THE BITCOIN MARKET EACH DAY
PlanB has made several observations recently, most notably regarding the remarkable correlation between Bitcoin’s stock-to-flow ratio and its price. Most recently he explains that for Bitcoin to have maintained a value of USD $7k since October 2017, $400 million per month has been invested.
He has tweeted:
To maintain $7000 since Oct 2017, #bitcoin must have had about $400M new cash inflow every month last 2.5 years! (30d x 24h x 6blocks x 12.5btc x $7k assuming all trading is zero sum game)
After the halving, we only need $200M per month to keep $7k level. If $400M stays, then 🚀 pic.twitter.com/d6hYJqxIUr
— PlanB (@100trillionUSD) April 6, 2020
To clarify his statement, miners add 1,800 new Bitcoins to the total supply every day, most of which are sold. If each Bitcoin is worth $7k, then just over $400 million per month of new investment has…
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Author: Trevor Smith