Bitcoin (BTC) Price May Even Reach $900,000: PlanB on 'Stock-to-Flow' Misunderstandings

News
Sat, 06/13/2020 - 15:46
Vladislav Sopov
The 'stock-to-flow' model for Bitcoin (BTC) is in the spotlight for bullish traders as they foresee insane gains for the flagship cryptocurrency’s price.
Cover image via u.today
Contents

Seasoned trader and analyst PlanB, who is well-known for his 'stock-to-flow' (S2F) model of Bitcoin (BTC), decided to clear all misunderstandings about its new version, the 'Cross Asset Model'.

$100,000 is Not the Limit

Typically, the inhabitants of Crypto Twitter have attempted to interpret PlanB's 'stock-to-flow' charts and are sure that $100,000 mark is the upper limit for the next bull rally. However, the author of these fascinating model outlined that the six-digit club is actually the start of an upmove rather than a target.

Image via Twitter

In Phase 5, Bitcoin (BTC) will have a 'stock-to-flow' ratio between 55 and 60. So, its price may grow from $100,000 to $900,000.

PlanB also claims that his model can't be falsified. Some very scarce assets like real estate objects or precious stones can be excluded from this forecast. This in turn doesn't mean it can be falsified.

It should be noted that U.Today Crypto News recently covered one S2F model for Ethereum (ETH). It was calculated by the Australian crypto evangelist Alex Saunders, who assumes that the price of Ethereum (ETH) also has a bright future.

When Will it Reach the Moon?

Finally, PlanB unveiled a list of assets that are not subject to price evaluations of the 'stock-to-flow' model. PlanB named altcoins with no Proof-of-Work (PoW) consensus or hash rate, and precious metals with no liquidity.

As usual, commentators started to ask PlanB about the accurate time frame of Bitcoin's explosive upmove towards the six-digit club. He admitted that time isn't considered as an input in his models, so, he can only guess about it:

Time is not a variable in S2FX, only S2F and value. But I would guess end2020-end2024-ish

Designed by Dutch blockchain enthusiast PlanB, the 'stock-to-flow' model explains the insane bullish rallies for the flagship cryptocurrency by its rapidly decreasing supply.

Plan B assumes that the fifth stage of this model started in May 2020.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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