The analyst who first applied the stock-to-flow model to Bitcoin says the top cryptocurrency is set to rise five times from its current levels.
According to the pseudonymous analyst PlanB, BTC will blow past the $100,000 price level predicted by his original S2F model, as well as rise above $288,000, which is the target price in his modified S2FX forecast.
“December close: $28,992. January close: $33,141. February close: $45,240. March 17 price: $55,000.
We are only 3.5 months into the Bitcoin bull market. In my opinion, BTC will not stop at $100,000 and will continue to S2FX $288,000 average price level (all-time high will be higher).”
The S2F model compares the amount of a commodity in circulation divided by the amount produced every year. It is traditionally used to analyze the intrinsic value of precious metals such as gold and silver.
PlanB published his most recent S2FX model in April of 2020 where he predicted that Bitcoin will reach a market capitalization of $5.5 trillion and a price of $288,000 between 2020 and 2024 (when the next halving will occur). At the time BTC was hovering below $9,000.
The analyst, who says he’s a Dutchman in his mid forties and a member of an institutional investment team that manages roughly $100 billion in assets, believes anyone considering adding Bitcoin to their portfolio should pay attention to its risk/reward ratio.
“Key thing is not Bitcoin’s high risk/volatility, but that return is higher than risk, the asymmetry.
Even if you only invest 5% of your portfolio (and thus can only max lose 5%), average portfolio return is +20%. BTC is the only asset I know with this large asymmetry.”
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