Bitcoin share price rises to USD 90,000 in May 2020

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.