Bitcoin has surged beyond $76,000 following Donald Trump’s victory in the United States presidential election on Nov. 5.
Bitcoin (BTC) analyst PlanB’s stock-to-flow model now projects a $500,000 price target for the asset within the next four-year cycle based on the model’s historical data and pattern.
PlanB pointed to Trump’s proposal to create a national BTC reserve as a potential driver for demand, suggesting it could add “200,000 BTCs per year” in buying pressure.
“If history is any guide, if the stock-to-flow model is any guide, then we’ll see sharp price increases from here,” the analyst said.
Related: Bitcoin pundits wary after ‘spoof city’ sours BTC price gains at $77K
Stock-to-flow model price targets
The stock-to-flow model, which assesses Bitcoin’s value based on its limited supply and scheduled halvings, suggests substantial price growth after each halving event.
While the analyst anticipates BTC price reaching $500,000 in this cycle, he notes a wide variance between $250,000 and $1,000,000 per BTC.
Source: PlanB
Related: BlackRock’s Bitcoin ETF flips gold fund
Institutional demand and government interest
The new Trump administration is expected to fuel increased institutional growth in BTC, with Senator Cynthia Lummis pushing to create a BTC reserve similar to the gold reserve.
The new administration may also issue an executive order to allocate federal funds for BTC acquisition, potentially establishing a new reserve standard.
PlanB also highlighted firms like MicroStrategy, which have announced substantial BTC acquisition plans as CEO Michael Saylor commits to purchasing 200,000 BTC per year over the next three years.
Related: $9.3B stablecoin exchange inflows have traders bracing higher Bitcoin prices
“Spoof city” sours BTC gains
In an X post on Nov. 8, popular trader Skew raised concern over a deceptive order book practice called “spoofing,” a tactic banned on legacy markets but common in crypto trading.
The practice — suspected by trading in the recent $77,270 BTC high seen on Bitstamp — involves large bands of liquidity being placed at price points, which are then thinned out or removed entirely after price reactions.
Other commentators and traders echoed these concerns, citing BTC’s historically aggressive upward trajectory as nowhere to be seen despite “massive” inflows and a potential long squeeze to follow.
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