PlanB analyst calls the current bitcoin price a “steal”

The expert expects the rally of the first cryptocurrency in 2024

08.12.2022 - 11:15

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The material is not an investment recommendation and is published for information purposes only.

The popular quantitative analyst PlanB is doubling down on his forecast of a massive rally for Bitcoin (BTC).

In a new interview with crypto analyst Scott Melker, PlanB says Bitcoin could soar more than 5,800% based on the stock-to-flow model he is well-known for.

The stock-to-flow model predicts an asset’s value changes by comparing its current price to the rate at which its supply is mined. Bitcoin’s supply will become squeezed with the next halving event scheduled in 2024.

“If we assume that the old model, the original 2019 model is correct, the $55,000 model, then the next halving could lead to prices somewhere — and I’m making a very wide range, some people don’t like it — but somewhere between $100,000 and a $1 million.”

PlanB says he is confident of the forecast unless his model is proven invalid or “Bitcoin dies.”

At time of writing, Bitcoin is changing hands at $16,841. A price rally to $100,000 would increase the top digital asset’s current value by 494%. To reach $1 million, Bitcoin would need to increase in price by 5,837%.

“I have no doubt whatsoever that we go to that $100,000-$1 million range, and no matter how you look at it, the current price is a steal if that’s what you believe. So yeah, I’m very optimistic.”

In the near term, PlanB previously said that a Bitcoin bottom could form sometime within the next three months. He said Bitcoin typically reaches a bear market low about 18 months after hitting a record-high price.

This material is taken from the website dailyhodl.com.

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