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Analyst Believes Bitcoin Is Still Poised To Hit $288K As Central Banks Print More Money

On Tuesday, August 25, Robeco portfolio manager Jeroen Blokland shared a on the velocity of money in the US. The blog post revealed that the velocity of money – a measure of the speed at which money travels through the economy –  has slumped to an all-time low.

According to Blokland, an increase in economic activities should theoretically increase the velocity of money. Although the COVID-19 pandemic has significantly slowed down economic activities, Blokland believes there is something else to blame for the low circulation.

He said that the “sharp [velocity] decline suggests there is just too much money to spend. A quick look at central bank balance sheets confirms this. The low velocity of money also means that even more money is needed to create inflation. So far, however, this has only resulted in asset price inflation.”

The Federal Reserve has been printing money to stimulate the economy since the pandemic began in March. The more money printed, the more inflation rises, the more the value of Bitcoin, Gold, and Silver increase.

PlanB, a renowned crypto analyst, said that Bitcoin is still on track to as central banks continue to print more money into the economy.

According to PlanB, the low velocity will boost Bitcoin to his of $288,000 within the next four years. He refers to it as the of the stock-to-flow model (S2FX). 

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