The host of the popular YouTube channel InvestAnswers presents intriguing predictions regarding Bitcoin’s potential price movements in a recent video.
The host of the well-known YouTube channel InvestAnswers has presented interesting predictions about Bitcoin’s potential price movements in a recent video.
Price Model Based on Global Money Supply
According to the analysis method used, a small percentage of the world’s total M2 money supply shifting to Bitcoin could result in significant price increases. For example, if only 0.5% of this new money supply were to flow into Bitcoin, the price could reach approximately $115,000. The model indicates that there are 15 million Bitcoins in circulation, with 5 million considered lost, and calculations are made based on the current market value.
The host of InvestAnswers also considered more extreme scenarios. If 1% of these new assets were to flow into Bitcoin, he suggested that BTC could soar to $146,000. However, he noted that while such predictions are possible, they are overly optimistic. He emphasized that his approach relies on assumptions ranging from 0.25% to 0.5%.
This approach is influenced not only by market dynamics but also by global economic developments and the behaviors of nation-states. Specifically, the scenario of countries grappling with inflation and creating new currency to invest in Bitcoin could have a significant impact on price targets.
Nation-States and Bitcoin’s Potential
Another notable point highlighted in the video is the potential interest of nations in Bitcoin. The host discussed the possibility that some governments might print their own money to purchase BTC, suggesting that if this were to happen, price predictions could be revised significantly upward. Such developments could shape the market through political and strategic maneuvers beyond the classic supply-demand balance.
The host of InvestAnswers stated that he has consistently regarded a range of $119,000 to $120,000 as a reasonable target. However, he cautioned investors not to focus solely on a single target, referring to the market’s history of surprises. He also noted that while various analysts propose much higher targets, these often lack a solid foundation.
The systematic approach underlying this model presents an unconventional method for generating predictions within the cryptocurrency market. By linking a macroeconomic factor like global money supply to the world of digital currencies, it demonstrates that price targets can be evaluated not only through technical analyses but also through broader economic parameters.
