PlanB, a well-known quantitative analyst, is doubling down on his prediction of a massive Bitcoin rally (BTC).
According to PlanB in a new interview with crypto analyst Scott Melker, Bitcoin could soar more than 5,800% based on the stock-to-flow model for which he is well-known.
The stock-to-flow model forecasts the value of an asset by comparing its current price to the rate at which its supply is mined. With the next halving event scheduled for 2024, Bitcoin’s supply will be constrained.
“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 claims to be confident in his forecast unless his model is proven incorrect or “Bitcoin dies.”
At the time of writing, Bitcoin is worth $16,841. A price increase of $100,000 would increase the current value of the top digital asset by 494%. Bitcoin’s price would have to rise by 5,837% to reach $1 million.
“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.”
PlanB previously predicted that a Bitcoin bottom would form within the next three months. He claims that Bitcoin typically reaches a bear market low 18 months after reaching a record high price.