Bayern LB, a lender based on the rich German province of Bavaria, has surprised the cryptocurrency community. In a recently published research paper, the bank asks a rather rhetorical question: “Is Bitcoin outshining gold?” and predicts a tenfold increase in CTC’s price by the spring, when the next bitcoin block reward halving takes place.
Bitcoin’s stock-to-flow ratio is set to increase significantly after the future Bitcoin [BTC] block reward halving in May 2020, from around 26 now, to 53. The indicator will almost catch up with gold, which is currently encompassing 58 but is anticipated to change insignificantly by next spring:
“If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges,” the Bayerische Landesbank’s analysts predict. “This would imply that the forthcoming halving effect has hardly been priced into the current Bitcoin price of approximately USD 8,000,” the German bankers remark.