The price of bitcoin may reach $55,000 USD sometime in 2020 or 2021, according to a new Bitcoin price prediction model — which factors in the decreasing bitcoin supply as a direct driver of market value. 

$1 Trillion Market Cap After 2020

Bitcoin market analyst PlanB shared yet another interesting chart plotting the effect of increasing scarcity due to the Bitcoin halving in May 2020. He hypothesizes that the stock-to-flow ratio directly affects price discovery based on historical data.

“The hypothesis in this study is that scarcity, as measured by [stock-to-flow], directly drives value,” he explains.

But the model combines other data such as the power law as well as historic fractals to help predict the possible price of bitcoin. According to this model:

The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000.

Bitcoin Halving Will Reduce Bitcoin Supply

As previously reported by Bitcoinist, the next halving will see the miner block reward go from 12.5 to…

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