There are all kinds of optimistic predictions about the price of Bitcoin and, as you probably know by now, the one made by PlanB is one of the most popular ones.
The analyst says he believes that his end-of-year price forecast for Bitcoin will be realized.
Bitcoin to reach $100k
PlanB spoke on the What Bitcoin Did podcast, and he said that he’s keeping faith in the stock-to-flow model he popularized in the crypto space.
The stock-to-flow model is typically used in valuing traditional assets, and this aims to predict price by measuring the existing supply against the production rate.
According to PlanB, Bitcoin will hit a six-figure price by the end of this year.
“I never had any doubt. I still think it will be $100,000 end of year, minimum. And there’s lots of time. We’re at [$40,000] now. So that’s a 2.5x. We’ve done more in one or two months, historically. So it can be done. I’m very confident…” he said.
He continued and said that “I still see people on the internet calling for $20,000 Bitcoin. I don’t think that’s going to happen. [$100,000] by Christmas.”
He continued and pointed out some other relevant issues regarding the price of Bitcoin.
“It’s just a linear regression, right? So it’s very obvious when that regression is no longer valid…” he explained.
He also made sure to highlight that “[The stock-to-flow model] says we should go up with the stock-to-flow ratio that has gone up since the halving. So we’re sort of waiting for that. But when it stays down – so when we stay at 30, 20, 40 thousand dollars for a couple of years, for example, a couple of months – then it’s obvious that this linear regression line is no longer fitting the data.”
He concluded by saying that it’s easy to see when it’s invalidated and people will be able to do this for themselves. Make sure to check out the video above in order to learn more details.