‘Ferocious Rally’: Weiss Ratings Bullish on Bitcoin, Price to Hit $70K Next Year | Markets and Prices – Bitcoin News

Weiss Ratings has outlined key reasons why investors should be bullish about bitcoin, seeing a ferocious rally with the price of the cryptocurrency expected to hit $70,000 next year. In addition, the Federal Reserves massive money-printing and institutional investments into cryptocurrencies add to the bullishness.

Weiss Ratings analysts Bruce Ng and Juan Villaverde explained last week why investors should be bullish about bitcoin despite some sideways consolidations. Weiss Ratings currently ranks bitcoin first among all cryptocurrencies overall.

One of the three key reasons why the analysts are bullish about bitcoin stems from a price prediction based on the stock-to-flow analysis (S2F). The popular forecasting model now points to a ferocious rally over the next 12 months or so, they wrote.

Ng and Villaverde described that S2F is based on the common-sense notion that the scarcer a commodity is, the more valuable it becomes, adding that scarcity is measured by circulating supply. For example, Gold has an S2F of 62, which is the number of years of current production required to match global above-ground holdings, they clarified.

After the May Bitcoin halving, 6.25 new bitcoins are being created every 10 minutes, meaning it would take an estimated 56 years for new mintage to match Bitcoins circulating supply, they continued. Notice how close that is to the S2F number for gold, which makes sense because bitcoin is fast becoming a major rival to gold as a safe-haven investment.

The analysts added that previous S2F predictions line up quite well with bitcoins actual price performance, as seen in the chart above, elaborating:

Now, based on the history of the halving, current S2F analysis says bitcoin should reach $70,000 by sometime around mid-2021 Even if it turns out to be only half right, you could still triple your money.

The other two reasons Weiss Ratings analysts highlighted were QE infinity and institutional money flowing into cryptocurrencies. The covid-19 pandemic environment has pushed the Federal Reserve to print $2.9 trillion in new paper money in just 13 weeks, or about $22 million a minute, the analysts detailed. By any measure, this is corruption of money on an industrial scale, they exclaimed, predicting that investors will pour money into bitcoin and gold as a safe haven when they lose confidence in paper money.

Billionaire investor Mike Novogratz has also been saying that central banks printing record amount of money is the best environment for bitcoin.

The last major factor Ng and Villaverde focused on was the increasing interest in cryptocurrency among institutional investors, such as by Paul Tudor Jones who invested about $210 million of his own money into bitcoin. Grayscale Investments has been adding bitcoin to its Grayscale Bitcoin Trust faster than the rate of new coins being mined and recently, venture capitalist Andreessen Horowitz raised half a billion dollars to invest in crypto startups. The analysts opined:

The sheer weight of institutional-sized money flows into a small market like bitcoin can have truly explosive effects.

Are you bullish on bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Weiss Ratings

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'Ferocious Rally': Weiss Ratings Bullish on Bitcoin, Price to Hit $70K Next Year | Markets and Prices - Bitcoin News