Bitcoin halving means slashed rewards for miners. In the next one, the reward will drop from 12.5 BTC per block mined to 6.25. In the two times, it has happened, without fail, prices have surged. But given recent events in the market, many have been uncertain if the 2020 halving will deliver the same results. Well, one historic predictor has come to the aid of many. Analyst PlanB who developed the Stock-to-Flow model says it is almost certain that prices surge. PlanB has called upon the data over the years and believes that Bitcoin will enjoy gains of upwards of 113% in the next 6 months.
The Stock-to-Flow model has accurately predicted the Bitcoin movement over the last couple of years. Its famous prediction coming in 2017 when it accurately predicted the historic surge. Because of this, it has remained a faithful indicator and prominent predictor for Bitcoin fans.
Now the indicator is showing that Bitcoin will experience a huge surge in the next six months, leading up to the halving.
Going Down On Bitcoin Halving History
In the very first Bitcoin halving in 2012, Bitcoin moved from $5 to $12 in the 6 months leading to the halving. In 2016 it again surged from $350 to $650. In the first instance, this was a surge of around 140% and 86% in the second one. If 113% is the average surge seen with every halving, then we can easily see Bitcoin come from its current levels and climb above $16,000.
This is however still a very conservative prediction since it is below all-time highs. Many analysts continue to speculate that Bitcoin could reach new all-time highs before the end of this year. If so, this means that Bitcoin could climb to reach over $30K at the time of halving.
Whatever the levels, it is still clear that the asset is still undervalued at current levels and bullish, set to reach new all-time highs in the coming months.
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