Cryptocurrencies, News, Trading

Bitcoin $US288,000 by December? Why one expert is a ‘massive bull’

The crypto bull run may just be getting started, with one expert giving credence to a forecast that predicts Bitcoin hitting $US288,000 ($370,000) by year-end.

Julian Kwan is chief executive and co-founder of InvestaX, a Singapore-based platform for Digital Securities Offerings, a new method of raising funds using blockchain technology. He’s also a “massive bull” – his words, not ours.

“The best way to look at this is, there’s a parallel financial universe being built, and the genie’s out of the bottle,” Kwan told Stockhead last week. Decentralised finance is bringing capital market activities such as lending and borrowing to cryptocurrency holders, so they can do something more than “just buy Bitcoin and sit on it,” Kwan notes.

“That’s really exciting – now we’ve got lending, we’ve got borrowing, we’ve got securitisation. “And that’s creating a whole new wave of products, which is super crazy, interesting and exciting stuff as well. “So I think that overall, it’s extremely bullish.

“It’s hard to find a sign that is anything other than, for at least the rest of the year, the price is going to melt up.”

$288,000 BTC in 2021 Kwon notes a forecast released by “Plan B,” an anonymous but revered cryptocurrency analyst from the Netherlands with 330,000 followers.
Based on his “stock to flow” model, Plan B predicted in April 2020 that Bitcoin will average $US288,000 ($370,000) this four-year cycle — meaning it will have to hit it by about December.

Plan B’s Stock to Flow model is based on the idea that the value of Bitcoin runs in four-year cycles, coinciding with the “halvings” that cut the block rewards to Bitcoin miners. It’s a bit complicated, but on 11 May 2020, the Bitcoin network went through its third “halving,” cutting by 50 per cent the rewards that are dispensed to the Bitcoin “miners” around the world. They are expending vast amounts of electricity to solve mathematical problems as part of Bitcoin’s Proof of Work protocol, a process that works to secure the decentralised crypto network from attack and dishonest actors.