The cryptocurrency price analyst PlanB is a well-known Twitter profile. Now, PlanB is out with a fresh Bitcoin prediction. According to PlanB, the Bitcoin price will explode to $100,000 by 2021. What’s more, this price surge has “over a hundred events” backing it up.
“Bitcoin will reach $100,000 in December 2021”
This news came in a Twitter discussion over the effects of the upcoming Bitcoin halving. According to PlanB, the Bitcoin halving in May 2020 will have similar results as the halvings in 2012 and 2016. Specifically, these events made the price of Bitcoin surge in the following price cycles.
Nevertheless, PlanB also said that Bitcoin’s exact path to a $100,000 price point is “irrelevant”. Rather, the thing that matters, according to PlanB, is the overall trajectory of the premier cryptocurrency.
PlanB argues that two events, such as the 2012 and 2014 halvings, are not enough to accurately predict Bitcoin’s 2021 price. Instead, PlanB urges observers to extrapolate a wide variety of events – co-integration – and use “100+ events” to predict Bitcoin’s future price.
S2F model suggests clear price trajectory to $100,000
As PlanB puts it, this makes it clear that there are many different signs that all point toward an upcoming Bitcoin price of $100,000. Although most analysts agree that the Bitcoin halving will propel Bitcoin’s price, it is unclear by how much.
“Key thing is that you know from co-integration (100+ events) that btc will probably go over $100k before Dec 2021. How (slower/lower or faster/steeper) and exactly when is irrelevant.”
The following chart, from PlanB and Digitalik, suggests that Bitcoin will reach a price of $100,000 by 2022. The model uses a stock-to-flow (S2F) model in order to predict Bitcoin’s price performance. What’s more, it also suggests a truly massive Bitcoin price of nearly $1 million by 2026.
Current Bitcoin price is above S2F prediction
Nevertheless, the model predicts that Bitcoin’s average price will remain around $100,000 until 2024. Although it may seem that the S2F model exaggerates the price of Bitcoin, this is actually not historically the case.
At the time of writing, for example, Bitcoin’s stock-to-flow average is roughly $8,650. However, Bitcoin is currently trading at $9,100 – which means that Bitcoin is currently outperforming S2F expectations.
This also ties into recent Twitter comments by trading veteran Tony Vays, who says he is bullish:
“$BTC price moves about $9,000 is a pretty bullish sign that another pre-having pump is very likely,” Vays recently wrote on Twitter.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.