Quantitative analyst PlanB is updating his Bitcoin (BTC) price target for the first quarter of 2022 and reveals when he thinks BTC will see a hyperbolic surge where it outperforms all other assets.
In an interview with Bitcoin bull Anthony Pompliano, the widely followed crypto analyst says that based on his various models, there’s a possibility for Bitcoin to ascend as much as 700% by early next year.
“If we look at on-chain signals right now, I would say that the top is at least a couple of months, say six months from here. So that would be end of Q1. Then the third kind of model that I use is of course that floor model. $135,000 – that’s not based on stock to flow… It’s a proprietary thing based on other stuff – technical and on-chain.
I guess we will be above $100,000, above $135,000 at the end of the year, and then we’ll continue to grow maybe towards to stock-to-flow X (S2FX) model target [at] $288,000 or even above. I would not be surprised even to see in Q1 in Q2 next year prices of $300,000, $400,000 [or] $500,000.”
The stock-to-flow model (S2F), which is traditionally used to track the performance of commodities like precious metals, compares an asset’s price to its available supply. Meanwhile, PlanB’s stock-to-flow cross-asset model (S2FX) looks at Bitcoin’s phase transitions from proof of concept to a financial asset to come up with a valuation for BTC.
In the long run, PlanB says he sees Bitcoin going on a hyperbolic surge.
“The money right now is with old people. The real estate and the gold, the physical world and not the digital world. The digital scarcity is a next-generation thing, so I think it will happen, but I also see in my own model that there is a linear relationship between scarcity and value… Scarcity, in my view, is the most important factor causing that linear relationship and causing people to put more money in real estate now.
That will change once next to divisibility, fungibility, portability, also the scarcity of Bitcoin will be better than real estate… So are going into this FOMO (fear of missing out), hyperbolic scenario right now or next year or the year after…
Say 2024 to 2028, that would be the period, or maybe a little bit after that, somewhere between 2024 and 2032. Yes, I think we both agree: there will be this hyperbolic scenario. Bitcoin will be, by far, the best asset physically, dynamically, mathematically above all others.”
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