Popular crypto analyst PlanB in a latest YouTube video has revealed that Bitcoin (BTC) looks all set for a series of big rallies. He noted that his stock-to-flow (S2F) model implies that Bitcoin could exceed $250,000 in the coming years.
Notably, his stock-to-flow (S2F) model predicts the performance of an asset based on the idea that the price increases as the asset becomes more scarce. Historically, PlanB’s S2F model has indicated the beginning of strong bull runs immediately after the halving, with the printing of a red dot.
Striking Predictions For BTC
After Trump won the elections, he noted that Bitcoin reacted to 76k and “if history is any guide, if the stock to flow model, is any guide, then we’ll see sharp price increases from here the red dots will continue..”
From the stock-flow model, he notes that, probably, the average bitcoin price in this halving cycle will be around $500,000.
“In short, the stock to flow model and I think that Bitcoin average price in those four years, in next four years, will be within 250,000 and 1 million,”, the analyst boldly stated.
But why would the price increase sharply from here from the already high of $76,000?
Trump Victory, Saylor’s Plan, And ETF Inflows:
The analyst noted a couple of factors. He highlighted Trump’s victory and that he’s very pro-Bitcoin as opposed to the Democratic president President Biden before him. He also remarked on Trump’s Bitcoin reserve promise as he is aiming for 1 million Bitcoins over the next 5 years, which is 200,000 Bitcoins per year. He remarked that the buying pressure of that action alone would be huge.
Furthermore, Microstrategy’s Michael Saylor recently announced a $42 billion Bitcoin buy program for the next three years, which also comes around to 200,000 Bitcoins every year, which could massively drive the bull run.
He also highlighted the ETF inflows and noted that the ETF inflow has been enormous since Trump’s win and he believes that it will continue to grow. He concluded by stating that there are a lot of reasons why Bitcoin price can increase sharply from where it is today.
Credit: Source link
