Quantitative analyst Plan B is unveiling a possible scenario where leading digital asset Bitcoin (BTC) skyrockets close to $300,000 this year.
The pseudonymous analyst took to Twitter to tell his 1.7 million followers that the stock-to-flow (S2F) model is hinting at a big price rise for BTC.
Plan B is known for applying the S2F, which is traditionally used in commodities markets and compares an asset’s supply to the rate at which it’s being produced, to Bitcoin. While Bitcoin has recently underperformed relative to Plan B’s S2F model, the analyst says big rallies are still in the cards for the flagship crypto.
“Just a scenario.”
Plan B says that while Bitcoin is well below the S2F model, there is still time for BTC to revert upward and record an average price of $100,000 over the coming years.
“BTC is 60% below stock-to-flow model value. Some think stock-to-flow is dead. Others know we have two more years to reach the $100,000 average. Your choice.”
According to Plan B, this scenario could have played out even sooner if several outside factors weren’t hampering the growth of Bitcoin.
“I think [the] China mining ban, rate hike expectations, and a war just delayed things a bit.”
The analyst also notes that BTC’s value is growing in terms of how much gold its worth.
“BTC = 20 ounces of gold since Jan 2021 (up from 5 ounces in 2020). Another 4x [coming] soon?”
Bitcoin is changing hands at $40,696 at time of writing, a 4.5% increase from its seven-day low of $38,842.
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The post Quant Analyst Plan B Lays Out Huge Bitcoin Rally Scenario – Here are His Targets appeared first on The Daily Hodl.
