3 - 5 minute read
Bitcoin (BTC) has been making headlines lately due to its volatile price fluctuations, causing traders and investors to keep a close eye on the cryptocurrency market. Recently, a quantitative analyst named PlanB has made headlines with his predictions that the next Bitcoin halving event could send the digital asset to new all-time highs.
PlanB tells his 1.8 million Twitter followers that the stock-to-flow (S2F) Bitcoin model predicts that the top digital asset will soar more than 1,847% from its current value of $27,316. The S2F model has traditionally been applied to commodities like gold and silver, predicting the performance of an asset based on the idea that the price increases as the asset becomes more scarce.
According to the analyst, Bitcoin will likely hit his massive target after the crypto king’s halving, an event that slashes BTC miners’ reward in half. PlanB’s prediction aligns with the S2F model, which places Bitcoin at around $60,000 just before the halving event.
PlanB defends his stock-to-flow model against critics who question its accuracy after it inaccurately forecasted Bitcoin would hit $100,000 in 2021. He believes that the halving will probably be at S2F model value $60,000 and BTC will pump after the halving, just like 2012, 2016, and 2020 halvings.
According to PlanB, his model has proven largely accurate in determining market trends since he created it in 2019. He believes that the S2F model works as expected and makes him money, and there is a lot of misunderstanding about S2F and models in general.
For traders, this news offers both potential opportunities and risks. If the S2F model proves to be accurate, Bitcoin could experience a significant price increase in the coming months. However, if the model is inaccurate, traders could suffer significant losses.
The Bottom Line
PlanB’s stock-to-flow model predicts that Bitcoin could soar more than 1,847% from its current value after the upcoming halving event. While this news offers exciting potential for traders, it’s important to approach the market with caution and consider the risks involved. As always, it’s crucial to do your own research and make informed decisions when trading cryptocurrencies.