Quantitative analyst PlanB believes Bitcoin will hit a six-figure price by the end of the year despite the recent meltdown in the cryptocurrency markets.
PlanB tells his 833,000 Twitter followers that BTC will close at or above $100,000 in December, according to his stock-to-flow (SF2) model.
However, based on logarithmic regression or the time model, the quantitative analyst says the flagship cryptocurrency could fall to $30,000.
“So what will Bitcoin’s December closing price be?
– S2F model says $100K
– Time model (logarithmic regression) says $30K
Next couple of months will be Interesting. My money is on S2F, of course.”
In the case of Bitcoin, the stock-to-flow model attempts to predict the price of the flagship cryptocurrency by measuring the amount of new supply entering the market per year compared to the amount of supply already in existence.
The time model or logarithmic regression, on the other hand, aims to predict the price of Bitcoin based on the assumption that growth will initially accelerate rapidly before slowing over time.
Bitcoin is trading at around $43,600 at the time of writing, according to CoinGecko.
PlanB also says, in response to reactions about his prediction, that his stock-to-flow model will be invalidated if Bitcoin does not hit a closing price of $100,000 in December.
“Price must increase >100k (to make a 100k average) or s2f is dead.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/cherezoff