Diginex chief executive Richard Byworth is revealing his expectations on the impact of corporate adoption on Bitcoin’s price and supply.
In an interview with Bloomberg Markets and Finance, the head of the blockchain solutions firm says he expects Bitcoin to surge over 212% from its current price of $56,000.
“We are modeling out about $175,000 for the price of Bitcoin by the end of this year.”
The CEO says BTC could hit his price target during Q4 of 2021 based on the stock-to-flow ratio (S2F), which divides the amount of a commodity in circulation by the amount mined per year.
“If you look at various aspects of stock-to-flow, the way that we’ve already seen 18.6 million Bitcoin has already been mined out of a 21 million supply, we are already starting to run into an interesting ratio on a stock-to-flow basis. And so we think that probably by end of October into the latter part of the year, we’re going to see that peak.”
Byworth adds that Bitcoin is currently experiencing a supply-side crisis as corporations race to acquire the leading crypto asset.
“You are starting to see the corporate adoption, institutional adoption to a degree that is so extreme. You’ve got four companies – MicroStrategy, Tesla, Square and more recently Meitu, those four companies, they’ve bought 40% of the annual supply of Bitcoin in just a few months. So we really have a supply-side crisis in Bitcoin. This is only the early stage of the rally. Things are going to get a lot more heated from here.”
Disclaimer: Opinions expressed at cryptotrade247.eu are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. cryptotrade247.eu does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is cryptotrade247.eu an investment advisor. Please note that cryptotrade247.eu participates in affiliate marketing.
Featured Image: Shutterstock/Syda Productions