Perianne Boring, a crypto lobbyist who is CEO of The Digital Chamber, says that Bitcoin's (CRYPTO: BTC) value could potentially skyrocket to $800,000 next year.
What Happened: Boring made this prediction this week during an interview with Fox Business. According to Boring, this prediction is based on the future policies of President-elect Donald Trump.
She indicated that if Trump's proposed policies for the crypto sector are successfully implemented, Bitcoin could see a value close to $1 million or more than that.
The stock-to-flow (S2F) model, traditionally used for commodities and now applied to Bitcoin, supports Boring's prediction. This model suggests that the price of an asset increases as it becomes more scarce.
Personnel is policy: Perianne Boring pic.twitter.com/52IPUr2owR
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"The stock-to-flow model says it's going to be at over $800,000 by the end of next year. If Donald Trump is successful in putting forward a lot of the proposals that he's proposed to the community, the sky is the limit because Bitcoin has a fixed supply," she said.
Trump, who had previously expressed skepticism about Bitcoin and crypto during his previous term, has pledged to protect and grow the digital asset sector during his recent campaign trail.
Also Read: This Analyst Says Bitcoin Could Reach $200K By End of 2025
He also promised to fire SEC Chair Gary Gensler and end policies that hinder crypto investors and companies from using digital assets.
Following Trump's victory, Gensler announced his resignation effective from January. Trump also indicated that the US would cease selling its seized Bitcoin on the open market, opting instead to hold the asset as an investment.
Why It Matters: This prediction by Boring is significant as it ties the potential surge in Bitcoin's value directly to the policies of the incoming administration.
Trump's shift in stance towards Bitcoin and his promises to protect and grow the digital asset sector could potentially lead to a significant increase in Bitcoin's value. His decision to hold seized Bitcoin as an investment also indicates a recognition of Bitcoin's potential as a valuable asset.
This could further drive demand and scarcity, leading to a surge in Bitcoin's value as suggested by the S2F model.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.