Bitcoin’s price could spike to a six-digit price territory as early as April or September this year, said the creator of the popular stock-to-flow model, PlanB. Additionally, the asset could surge to $288,000 by the year’s end if it follows the 2013 bull cycle.
Bitcoin To $100K In Two To Seven Months?
The primary cryptocurrency has been on a tear in the past several months after exploding by about 5x since early October 2020. In the first month and a half in the new year alone, the asset has added nearly $20,000 of value to a new record registered earlier today.
Consequently, these developments have prompted numerous discussions within the community, which are the next milestones in BTC’s way up and how far ahead it could rise.
According to the creator of the stock-to-flow model, bitcoin is on route to break into a six-digit territory in the next up to seven months (by September 2020).
Bitcoin Price Performance During 2013 / 2017/ 2021 runs. Source: PlanB
He noted that the cryptocurrency has been moving with “steady progression and inevitability” since the 2020 halving. As such, the price target of $100,000 could come somewhere between April and September.
The original version of the Bitcoin S2F model, which he released in 2019, described the stock as the size of existing reserves (or stockpiles) and the flow – the annual supply of bitcoins on the market.
Naturally, the halving – the event that slashes in half the production rate of new coins – has a vital role in the S2F development.
$288K By The End Of 2021?
While reaching $100,000 in the upcoming months would be a significant milestone for the first-ever cryptocurrency, it could be just a stepping stone to even higher ground. In a previous tweet, PlanB predicted that BTC could continue upwards to $288,000 by the end of 2021.
This time, he based his somewhat optimistic projection on the upgraded version of the model known as the stock to flow cross-asset (S2FX) model and the 2013 bull run.
Apart from the “stock” and “flow,” S2FX also considers the different phases in which BTC has gone through since its inception in 2009. Those include the initial proof-of-concept, the payment stage, e-gold, and the latest one – financial asset.
As the graph above illustrates, BTC’s ongoing rally is somewhere between the 2013 and 2017 cycles. If the asset’s future performance resembles more that of the first major run, it could make a 500% surge to $288,000.
Should bitcoin indeed reaches such a whopping price tag, its market capitalization will greatly exceed that of the world’s most valuable company Apple at over $5.3 trillion.
Title: Bitcoin Price Can Reach $100,000 by September According to S2F Model
Sourced From: cryptopotato.com/bitcoin-price-can-reach-100000-by-september-according-to-s2f-model/
Published Date: Fri, 12 Feb 2021 15:32:49 +0000