Bitcoin Surges to $76K Following Trump Victory: PlanB Predicts $500K Target
Key Takeaways
- Bitcoin reached $76,000 following Donald Trump’s election victory on Nov. 5.
- PlanB’s stock-to-flow model projects a $500,000 BTC price target within the next four years.
- Trump’s proposal for a national BTC reserve may fuel demand and drive prices higher.
- Institutional interest is growing with companies like MicroStrategy planning major BTC acquisitions.
- “Spoofing” concerns raise questions over market manipulation in crypto trading.
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Subscribe NowBy Gnosis News | November 9, 2024
Introduction
In the wake of Donald Trump's election victory, Bitcoin prices surged past $76,000. Market analyst PlanB has projected even higher gains, forecasting a potential $500,000 price within four years, supported by the stock-to-flow model, a valuation approach based on Bitcoin’s finite supply and regular halvings.
Bitcoin’s Rise and Trump’s Influence
Trump’s proposed creation of a national BTC reserve is expected to increase demand, with the government potentially acquiring 200,000 BTC annually. PlanB suggests that, if historical trends hold, Bitcoin could experience steep price increases in the near future.
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Sign Up NowStock-to-Flow Model’s Projections
The stock-to-flow model, a popular framework for Bitcoin valuation, predicts substantial growth following halving events. Based on past cycles, the model now points to a high likelihood of reaching a target range between $250,000 and $1,000,000 per BTC within the next four years, with $500,000 as a mid-point target.
What is the Stock-to-Flow Model?
This model measures the scarcity of assets by comparing their existing supply with annual production rates. Bitcoin’s fixed supply and halving events align well with this model, suggesting a long-term upward trend in price as supply diminishes and demand potentially rises.
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Explore the AppGrowing Institutional Demand and Potential Federal Support
Institutional investment continues to grow under Trump’s administration, with Senator Cynthia Lummis advocating for a BTC reserve similar to the U.S. gold reserve. An executive order could enable federal funding for Bitcoin acquisition, a move likely to further buoy prices and institutional interest.
MicroStrategy and Corporate Influence
Corporate interest in Bitcoin remains high, with firms like MicroStrategy announcing plans to buy large quantities of BTC. CEO Michael Saylor has committed to purchasing 200,000 BTC per year over the next three years, amplifying demand and strengthening the cryptocurrency’s market position.
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Sign Up NowMarket Concerns Over “Spoofing” Tactics
Not all traders are optimistic. Recent discussions have highlighted concerns over “spoofing,” a practice where large amounts of liquidity are placed at specific price points to create artificial buying or selling pressure. Despite being banned in traditional markets, spoofing remains an issue in crypto, with potential implications for Bitcoin’s upward trajectory.
Conclusion
With Trump’s support and PlanB’s projections, Bitcoin’s future looks optimistic for investors. However, market manipulation concerns and high volatility continue to challenge Bitcoin’s growth trajectory. As the federal government potentially steps into the Bitcoin arena, institutional and public interest may drive the digital asset into a new era of growth.
Sources: PlanB, Cointelegraph, Bitstamp
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