A crypto analyst known for applying the stock-to-flow ratio to Bitcoin has revealed a set of massive calls on where the price of BTC may be heading.
Stock-to-flow is typically used to analyze precious metals, and calculates the current supply of a given commodity divided by the amount produced per year in order to predict future value. When using the ratio to determine where Bitcoin may be heading, the leading cryptocurrency’s limited supply of 21 million coins becomes a key factor.
In a new viral tweet, PlanB tells his 22,000 followers that after making some tweaks, his stock-to-flow projection now tracks Bitcoin’s price history with 99.5% accuracy, and forecasts BTC will hit $1 million in less than a decade before ultimately hitting $10 million.
“This is becoming scary: Using October instead of December data, stock-to-flow model fit improves to 99.5% R2!
Model error was mainly caused by November 2013 and December 2017 all-time highs, so sampling without the ATH gives less noise. Predicted Bitcoin prices increase: $100K (2020+), $1M (2024+), $10M (2028+).”
At time of publishing, BTC is up 3.77% at $10,882 according to COIN360. Ethereum is down 0.55% at $234.46, XRP is up 1.61% at $0.3170 and Litecoin is up 3.11% at $92.36.
Technical analysts at large are tracking Bitcoin’s potential recovery with the leading crypto on the rise after briefly dipping below $10,000.
Blockonomi – BTC Target Met as slight recovery begins
Seeking Alpha – Bitcoin’s bull market is independent from Libra
Blockonomi – LTC finds support, but no signs of a reversal yet