The pseudonymous trader who made the accurate call that BTC will fall by over 40% last year is back with another prediction. This time, he says Bitcoin may be on a long-term path to $540,000.
Dave the Wave relies on a chart shared by on-chain market analyst Willy Woo to illustrate that Bitcoin is still in the earliest stage of the adoption life cycle.
If the current market represents 2.5%, then that would put price at 500K with 100% adoption/ full capitalization. This is the S curve. https://t.co/ZXj5YNlckp
— dave the wave (@davthewave) September 29, 2020
According to Dave, Bitcoin’s growth in terms of market share is just getting started as those buying the number one cryptocurrency over the last 11 years are considered innovators which make up 2.5% of the total addressable market.
Using the S-curve, Dave predicts that Bitcoin’s value will skyrocket to $540,000 as it captures a bigger percentage of the market share in the next decade or so.
While Dave sees the possibility of Bitcoin meteorically rising 4,900% from its current value of $10,800 as extrapolated from the S-curve, the crypto strategist remains a skeptic of the stock-to-flow model (S2F) as he doesn’t expect Bitcoin to hit $100,000 by December 2021.
“OK, by Dec 2021 we will know then: S2F>$100,000, Dave<$100,000.”
Dave highlights that the criteria are set to keep subscribers from blindly believing in the model.
Featured Image: Shutterstock/Bruce Rolff