bitcoin bottomed and headed for $500,000

Aurélien Ohayon — trader and CEO of algorithmic crypto trading firm XOR Strategy — suggested that bitcoin’s (BTC) price is headed towards a $500,000 milestone, echoing pseudonymous bitcoin’s stock-to-flow (S2F) model creator PlanB.

In a Jan. 1 Tweet, Ohayon claimed that bitcoin’s next bull run is already starting and his price target for this growth cycle is $500,000. The tweet shared by the analyst with his 93,000 Twitter followers featured a chart with trendlines and technical indicators, but no explanation of the rationale behind the analysis.

These claims resonate with recent comments made by the cryptocurrency analyst and bitcoin proponent behind the S2F model PlanB. According to him, the S2F model has not yet been invalidated and the bull run that will follow the next block reward halving will lead to a price “between $100,000 and a $1 million.”

The stock-to-flow model is a type of economic quantitative model that prices commodities based on the total existing supply (stock) and the new supply created in a given time (flow.) In the case of bitcoin, the current supply is the stock, and the newly-mined bitcoin is the flow.

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