Bitcoin to $288,000 in this bull run?

We are not big fans of market predictions. The majority of future Bitcoin price announ-cements are (educated) guesses and even the most high-profile forecasters are proven wrong time and again. However, sometimes we come across a serious quantitative valuation attempt.

One such example is the Bitcoin Stock-to-Flow Model, created by PlanB, a Dutch institutional investor with a quantitative finance background. In this model, he uses scarcity to quantify bitcoin value. The hypothesis in his study is that scarcity, as measured by stock-to-flow, drives value.

The model estimates that the Bitcoin price will reach $288,000 before the next halving. The model is a working hypothesis but has already been verified by several other analysts. If you are not familiar with PlanB’s research yet, we suggest you read his latest blog post on the topic.

Solidum Capital investment strategies performance

May 2020 (returns in USD):
5.6%  Solidum Cautus Crypto Hedge Strategy (monthly report)
2.3%  Solidum Actio Crypto Growth Strategy (monthly report)

In the previous month, the crypto market exhibited high fluctuations. Consequently, Solidum Cautus and Solidum Actio slightly underperformed compared to the market in May. The market recorded a positive monthly performance of 8.40%, whereas Solidum Cautus reported a gain of 5.6% and Solidum Actio a gain of 2.3%.

Market overview

In May, the crypto market continued with the positive trend established in the previous weeks. The market gained 5.8% in the first week and 83.6% since the low on 16 March 2020. This was followed by a sharp two-day correction with a loss of 15.3%. The market quickly rebounded and continued with the uptrend to finish the month with a solid gain of 8.4%.

Chart 1 - Crypto market performance (2020-05)

18 of the top 25 assets by market cap recorded a positive performance in May. The top three performers were Cardano (+55%), VeChain (+43%), and IOTA (+24%), while Bitcoin gained 9%. Its dominance has marginally decreased and ended the month at 65.2% of the total cryptocurrency market capitalization.

Chart 2 - Top 25 assets by market cap performance (2020-05)
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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

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