Stock-to-flow crypto analyst PlanB Bitcoin price prediction now stands updated to touch $288,000. The famed BTC analyst says that by 2024 multiple factors would contribute towards a meteoric rise in Bitcoin price, helping it touch $288,000.
— PlanB (@100trillionUSD) April 27, 2020
In his April 27 post published on Medium, the PlanB Bitcoin price prediction is based on a refined stock-to-flow model. The new figures come courtesy of his S2F model that counts the BTC value depending on the number of coins entering the market through the mining route in comparison to the current market supply. Basically, his model heavily relies on post Bitcoin halving coin supply in the market.
PlanB Bitcoin modeling uses complex variables
PlanB Bitcoin price predictions have gained traction due to his mix of technical and fundamental aspects. Not many people knew him, but when he unveiled that he is a Europe-based institutional investor and BTC quantitative analyst, he became an overnight star.
BTC scarcity chart by PlanB at Medium
The ‘Stock-to-flow’ model uses the above-ground supply of the asset with the annual inflation figure. The other variable employed in the analysis is the market cap, which is then subject to logarithmic regression so that historical points are interconnected. Finally, R-squaring and statistics revisions help predict the final outcome.
After applying all these methodologies, the PlanB Bitcoin model expects the price to remain between $55,000 to $100,000 post the ‘halving.’ In his April 27 post, he revises his ‘perfect fit’ forecast, saying that this price range is too low for Bitcoin.
Revised stock-to-flow analysis paints a highly bullish picture
The refined approach is based on PlanB’s modeling that the same BTC price analysis is applicable to both gold and silver as well. Recently, both these metals have been touted as Bitcoin’s contemporaries. He adds that time is a variable that, if eliminated from the modeling, allows BTC price plotting in four phases. All these phases are defined as per market cycles that depend on BTC scarcity.
BTC monthly blocks chart by PlanB at Medium
Going further, PlanB comes to the conclusion that the BTC market value can touch $5.5T in the next BTC phase. Such a valuation puts the BTC price at around $288,000 in 2024.
PlanB Bitcoin price prediction models have also faced flak from crypto fans who question the effectiveness of math used in the complex pricing model. Skeptics argue that the issuance curve and inflation rate aren’t accounted for fairly. Despite the criticism, PlanB Bitcoin price predictions are gaining popularity.