CNBC’s Joe Kernen Teases Bitcoin Surge to $55,000 – BTC, Ethereum, XRP, Litecoin, Bitcoin Cash, Binance Coin, EOS, Tron Forecasts
CNBC anchor and newfound Bitcoin believer Joe Kernen is putting a spotlight on Bitcoin’s stock-to-flow ratio.
On a new episode of Squawk Box, Kernen highlights the popular metric, which is typically used to predict the price of precious metals. Stock-to-flow calculates the current supply of a given commodity divided by the amount produced per year.
When applied to Bitcoin, crypto analysts PlanB and Julian Hosp say the indicator tracks Bitcoin’s past price movements with 95% to 99% accuracy and shows the leading cryptocurrency hitting $55,000 in 2020 or 2021 and $1 million per BTC sometime in the next decade.
Although Kernen says he’s teasing Bitcoin believers, he notes the high correlation between BTC’s past price movements and its stock-to-flow ratio.
Right now, the stock-to-flow for Bitcoin is 25, which means at the current rate of production, it would take 25 years of Bitcoin mining to replace the existing stockpile of BTC that’s already on the market. That number will jump to 50 by Bitcoin’s next halving in 2020, which will cut the amount of BTC rewarded to miners in half.
As Kernen notes, gold’s SF ratio, by comparison, is 62.
“Bitcoin, the next halving is in May of 2020 and – do you have an indication of $55,000?
If you look at stock flow, I’m just saying this for some of the Bitcoin believers, the maximalists. But yeah, $55,000 after the next halving which would be in May of 2020…
Do you know how long, with what we produce of gold every year, it would take 62 years to produce that much gold? So if you do the same kind of analysis using Bitcoin or silver or anything, you can come up with some of these metrics that are highly correlated.”
— Squawk Box (@SquawkCNBC) July 29, 2019
Right now, Bitcoin is up 0.62% at $9,522 according to COIN360. Ethereum is up 2.2% at $211.36, XRP is up 1.08% at $0.31 and Litecoin is up 3.08% at $91.32.
With the altcoin market mixed, CoinDesk analyst Sebastian Sinclair says BTC may soon drop below $9,000.
XRP, Litecoin, Bitcoin Cash, Binance Coin, EOS, Tron
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