The CEO said his BTC price prediction of $1 million is based on the stock-to-flow model and other valuation modeling methods.
As the price of Bitcoin continues to surge, Macroeconomics guru and Global Macro Investor CEO Raoul Pal said BTC would reach $1 million by 2026. Noting that BTC supply is limited, the CEO noted that the continuous rise in Bitcoin’s price is also fuelling the increase in its market capitalization.
Speaking further in an interview on the 20th of December, 2019, the economist said his price target on BTC relies on the stock-to-flow model and other valuation methods. He noted that a Twitter user, Plan B, explains the stock-to-flow model, making it easier to analyze how supply affects the price.
“It’s the same way that gold works, diamond works, things like that work… rare assets. And it becomes relatively predictable. That predictability would suggest that we might get somewhere like $1 million by 2025-26.”
Confident about his price prediction on BTC, Pal said that the digital asset reaching $1 million by 2026 is “not unreasonable.”
According to the economist, the king coin is surging as a result of the laws of supply and demand, hence resulting in the increasing BTC interest among institutional investors. Notably, several institutions acquired large amounts of Bitcoin in 2020. Examples of the institutions are MicroStrategy Inc., which began purchasing large amounts of BTC in August last year, Grayscale Investments, Square Inc, and more.
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