Crypto looking at a major bull run
The prediction is more than just enthusiastic wishing
There are a growing number of signs that indicate cryptocurrency might soon be ready to make a seriously large bull run. This is more than just a few wild predictions from crypto exchange operators looking to drum up business – the clues come from an analysis of mainstream market data and other sources such as commodities and precious metals.
The stock to flow (S/F) ratio of gold is the highest it has been in 62 years. It isn’t possible for the S/F ratio of any commodity such as gold to climb any higher, as market attention causes values to climb, which leads to greater production. This ultimately leads to a decrease in value as the market becomes more saturated.
Bitcoin (BTC) has a stock of 17.5 million coins that cannot be increased. It offers a supply of 0.7 million per year and, since the S/F is capped due to the cap on the number of coins, more analysts believe BTC could overtake gold in terms of valuation.
According to analyst Willy Woo, “I’m swimming in data and you kind of get intuition concerning things. I would say a one-in-20 to one-in-40 chance that this floor falls through. So that is 95%-97.5% that the bottom is in. I would consider if we drop below $4,300, [the bears] would be very lucky.”
He adds, “We see a doubling in user base every year pretty consistently over 10 years. So what we see is the mapping of the world coming in and in this case the world coming in with capital that’s injected into Bitcoin.”
While there is still a long way to go before BTC could replace gold, it’s an interesting concept. The idea is made even more interesting by the realization that, if it were to happen, one BTC would be worth $350,000.