The analyst Plan B estimates that the price of Bitcoin (BTC) will rise to USD 98,000 during the month of November and will exceed USD 130,000 before the end of 2021. The researcher is based on the famous Stock To Flow model (S2F). to predict the value that the cryptocurrency will have in the months to come, and on this he comments that “it will be a very beautiful Christmas this year.”
Plan B was a guest on Sunday, October 24, on the “Unchained” podcast, where he spoke about the level of precision of his prediction model . “I had already said that the price of bitcoin would close above USD 40,000 in August and that in September it would go down a bit, but that it will close October above USD 63,000,” said the analyst.
In fact, since 2012 the price of bitcoin has complied with the parameters established in the Stock To Flow model, as can be seen in the following graph. Based on it, he estimates that the cryptocurrency will cost $135,000 next December.
However, the strong corrections that the price of the cryptocurrency has registered have been enough for the followers of Plan B to lose confidence in its predictions, as happened last June. Now, the public has returned to believe in his estimates.
The S2F model is based on the theory that bitcoin is a store of value like gold or silver that maintains its value over the long term due to its relative scarcity . So, under this principle, Plan B correlates the stock or amount of assets currently available, with the flow or amount of bitcoins mined annually, and based on that it projects where the price of the cryptocurrency can go.
Bitcoin ETFs: A Positive Impact
As reported by CryptoNews, the price of BTC set a new all-time high, surpassing $67,000 on Wednesday, October 20. In this regard, Plan B believes that the launch of bitcoin exchange-traded funds (ETFs) in the United States are positively influencing the price of the cryptocurrency.
ETFs were something that we have all been waiting for for a long time and that is why they positively impact the market. It is true that it is the first step that the SEC takes with an instrument that it understands well as ETFs, although I understand that these investment tools are not as good as cash.Plan B, bitcoin market analyst.
The researcher also mentions inflation as another factor that is greatly influencing the price of bitcoin. It is because “the Federal Reserve of the United States printed a lot of money to give aid and now the prices of all products are rising, even that of bitcoin,” he added.
Based on all the elements that are coming together today for the price of BTC to rise, Plan B makes it difficult for a strong correction to take place , not in the short term. If anything, it is clear that the bitcoin market is not yet mature enough for its volatility to reduce.
“I think we are still in the grip of greed and fear, but I do know that the time will come, perhaps it will be for the next halving, or after 2024, in which bitcoin will become a global reserve currency,” he said.