Quant analyst PlanB is leaning bullish on Bitcoin (BTC) as the flagship crypto asset trades in a range below the all-time high reached late last month.
In a new strategy session, PlanB tells his 213,000 YouTube subscribers that Bitcoin is far away from reaching the peak of the current four-year cycle based on the stock-to-flow model.
[adinserter block="1"]The stock-to-flow model is a predictive tool that assumes the scarcity of a commodity drives the price.
“Bitcoin price [is] at $104,000, which is still far away from the stock-to-flow value of $500,000 based on fundamentals, scarcity fundamentals. That’s what I expect the average over this four-year cycle to be. So we’re still far away from that. But we’re also still only one year in the cycle, we have three years to go and so I think Bitcoin is very undervalued.”
According to Plan B, Bitcoin is at the “very beginning of a bull market” based on historical precedent.
“We made a fake loop in bull market territory after the January 2024 [spot Bitcoin exchange-traded funds] ETF introductions. And we’re now right back at where all the bull markets in the past have started. So it’s a very bullish signal if you ask me.”
The quant analyst says Bitcoin could skyrocket by up to approximately 860% over the course of the current cycle.
“[Bitcoin] is currently in a bull market, targeting… let’s say $250,000 to $1 million range for the average price in this cycle.”
Bitcoin is trading at $104,300 at time of writing.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
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 losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
