Despite the huge volatility of the crypto space, there seem to be more and more optimistic crypto predictions popping up these days.
BTC will break $1 million
Now, a crypto analyst defends the stock-to-flow model that he says is showing the fact that BTC will break $1 million.
PlanB said that this model does not show a high correlation between BTC’s stock-to-flow ratio and the price of the digital asset.
He said that this shows that the two are cointegrated and this implies the fact that the relationship is strong as if the ration and the priced are tethered to one another.
ICYMI: the very high correlation between stock-to-flow and #bitcoin price is NOT spurious … because S2F and btc price are co-integrated 🔥..🚀 pic.twitter.com/xU9NwmGUUW
— PlanB (@100trillionUSD) December 12, 2019
PlanB describes cointegration using an analogy of a drunk walking his dog along a path.
“The drunk wanders in a sort of random fashion and the dog has to go with him because he’s on the leash. But sometimes [the dog] will be on the right, sometimes he will be on the left. But he cannot go further than the leash. So you don’t know where the dog and the drunk are going, but you know that they stay together,” he said.
Plan B continued and explained that “In this case, it’s even more interesting because we know that the stock-to-flow isn’t wandering like a drunk. [Bitcoin’s supply] is predetermined. So for prediction purposes, this is almost too good to be true.”
He also suggested the fact that BTC will be reaching $1 million after 2025.
Bitcoin is set to reach $100k in 2020
Despite the market’s volatility, optimistic predictions about the price of BTC doesn’t cease to pop up.
More experts are saying that in 2020 BTC will hit $100k.
Anyway, at the moment of writing this article, BTC is trading in the red and the most important coin in the market is priced at $6,923.04.
On the other hand, earlier today, we reported that a popular crypto analyst says that BTC is on the verge of a breakdown.