Bitcoin will hit a price of at least $100,000 in this Bitcoin halving cycle and a price of $1 million in the preceding halving cycle according to Plan B, the pseudonymous creator of the Bitcoin stock-to-flow (S2F) model. However, the Bitcoin proponent has stated that he is unconcerned about where the price landed in the short term.
He made the bold Bitcoin price prediction in a recent interview with fellow Dutch technical analyst and YouTuber, Madelon Vos, where he also spoke about his Bitcoin models and his expectations of Bitcoin.
Why Plan B is not fixated on the short-term price of Bitcoin
The direction of the price of Bitcoin has been a major subject of speculation in the crypto market. Despite this, Plan B has revealed that he is not very concerned about the short-term price of Bitcoin. This is because he has a long-term view and is already thinking of what prices Bitcoin can reach in the future.
Right now, it is very exciting to see whether it reaches the $100,000 in the next two year, well actually this month and in the next month,” Plan B noted. “I am actually already working on the next cycle because I really don’t care whether it stays stuck on $50,000 or $100,000 or $288,000.
His take is coming at a time when the price of Bitcoin started to gain some traction. Recall that Bitcoin briefly smashed through the $50,000 barrier to reach a price of $51,500 on Friday for the first time since the 8th of December. However, at press time, the asset is currently trading at around $49,900, down 2.03% in the last 24 hours.
According to Plan B, he is not fixated on the current price due to his expectations of the Bitcoin market in this phase of its development. The investor considers Bitcoin to be in phase 5 of its development where it is expected that institutional investors, such as the Michael Saylor’s, and even countries – like El Salvador – would add Bitcoin to their treasuries. However, the negatives of this phase, which include the expectation that Bitcoin would be dragged into the geo-political playing field, is also in play as well according to him.
While speaking of the super cycle, he noted that it was not yet time to talk of hyperbitcoinization as this would only become possible when the market capitalization of Bitcoin surpasses the $1 trillion cap of gold and then the $100 trillion cap of the real estate market.
Is the Bitcoin StocktoFlow Model still valid? PlanB Chimes In
Despite the market’s recent criticism of the credibility of the S2F model, Plan B stated that the model he created to help him remove his emotions from trading decisions is still very much in play. In response to a question on if he had a 100% trust in the S2F model, his response was an emphatic yes.
He further notes that as long as the price of Bitcoin continues to follow a linear path, where it increases as supply reduces and demand increases, the S2F model will continue to remain valid.
He however conceded that the floor model, the model with which he predicted that Bitcoin would reach $100,000 by the end of the year, was no longer valid. “If it fails, it fails. If it works, then it works,” he said about his models.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.