Quick Summary
- In response to growing speculation about Bitcoin’s imminent rise, the popular quantitative analyst PlanB is doubling down on his forecast.
- According to PlanB’s stock-to-flow model, Bitcoin could surge over 5,800% talked in a new interview with crypto analyst Scott Melker.
By comparing the current price of an asset with its mining rate, the stock-to-flow model predicts its value change over time. A halving of Bitcoin’s supply is scheduled for 2024, which will lead to a squeeze on the currency’s supply.
“If we assume that the old model, the original 2019 model is correct, the $55,000 model, then the next halving could lead to prices somewhere — and I’m making a very wide range, some people don’t like it — but somewhere between $100,000 and a $1 million.”
PlanB says he is confident of the forecast unless his model is proven invalid or “Bitcoin dies.”
The top digital asset’s current value would increase by 494% if its price rose to $100,000. Bitcoin’s price would need to increase by 5,837% in order to reach $1 million.
“I have no doubt whatsoever that we go to that $100,000-$1 million range, and no matter how you look at it, the current price is a steal if that’s what you believe. So yeah, I’m very optimistic.”
Bitcoin could reach a bottom within the next three months, according to PlanB. It typically takes Bitcoin 18 months to reach a bear market low after reaching record highs.
Conclusion
Bitcoin is certainly a very volatile asset and there are many different predictions that Bitcoin will fall to $5,000. However, I personally agree with his prediction and believe that Bitcoin will go up high.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
