There are a lot of optimistic predictions about the price of Bitcoin, and one of the most popular is probably the one made by PlanB.
The analyst believes that his Bitcoin price forecast for the end of the year will be realized.
Bitcoin is expected to reach $100,000.
PlanB appeared on the What Bitcoin Did podcast and stated that he still believes in the stock-to-flow model that he popularized in the crypto space.
The stock-to-flow model is commonly used in valuing traditional assets, and it attempts to predict price by comparing existing supply to the rate of production.
Bitcoin will reach a six-figure price by the end of the year, according to PlanB.
There was never any doubt. I still believe it will be at least $100,000 by the end of the year. And there is plenty of time. We’ve reached [$40,000]. That’s a 2.5x. Historically, we’ve accomplished more in one or two months. So it is possible. “I have a lot of confidence,” he said.
He went on to say, “I still see people on the internet calling for $20,000 Bitcoin.” That, I don’t believe, is going to happen. [$100,000] by the holidays.”
He went on to discuss some other pertinent issues concerning Bitcoin’s price.
“Isn’t it just a linear regression? So when that regression is no longer valid, it’s very obvious…” he explained.
He also made a point of emphasizing that “[the stock-to-flow model] says we should go up with the stock-to-flow ratio that has increased since the halving.” As a result, we’re sort of waiting for that. But when it stays down – say, for a couple of years, or a couple of months – it’s clear that this linear regression line is no longer fitting the data.”
He concluded by stating that it is easy to see when it is invalidated and that people will be able to do so for themselves. Make sure to watch the video above to get more information.