Experts at Bayerische Landesbank (Bayern LB) expect the Bitcoin rate to be USD 90,000 in May 2020. The forecast is based on a value from the raw material analysis.
In May 2020, the Bitcoin rate will be 90,000 US dollars. This is what experts from Bayerische Landesbank (Bayern LB) claim in a recent study. The price is currently just over 8,000 US dollars.
They cite the development of the stock-to-flow value derived from the raw material analysis as the reason. It is expected to double due to the Bitcoin halving due in May 2020. With a Bitcoin halving, the reward for the Bitcoin miners is halved, which usually causes the share price to rise. Analysts use the stock-flow ratio to assess the scarcity of a good. The “stock” is the current offer, the flow the future offer. The higher this ratio is, the greater a value is.
Bitcoins cannot multiply indefinitely due to the upper production limit and the halving. According to Bayern LB, the stock-to-flow value of Bitcoins will increase drastically in May 2020, i.e. after the next halving: From currently 25.8 to almost 53.