Currently, Bitcoin is trading around $9,915 with 24 hours loss of 1.3%, as per Coincodex.
In the short term, the leading cryptocurrency might be going downwards, but a new high of five figure seems to be imminent.
According to prominent analyst PlanB, who is known for his stock-to-flow approach to Bitcoin price predicted one BTC’s value to reach beyond $100k before December 2021 as bitcoin price and stock-to-flow are cointegrated.
Though he didn’t calculate the exact time if BTC is less than $100k around that time, “it becomes non-stationary,” he said.
This is the only prediction he makes from the S2F model.
Stock to flow ratio of an asset is defined as the amount of commodities held in inventories relative to its annual supply.
It is basically a measure of abundance with gold having the highest stock to flow rate of all commodities.
Bitcoin currently has an SF of 25 that will double with next reward halving — just about 7 months away — and reach very close to gold’s 62.
$100k may seem like a big number, although validated by PlanB’s stock-to-flow model it’s not the wildest one.
Draper is steadfast on his $250,000 prediction for BTC but now feels this number might even be an underestimated figure, after all.
“$250,000 means that bitcoin would then have about a 5 per cent market share of the currency world and I think that may be understating the power of bitcoin,”
Meanwhile, crypto proponent and computer programmer John McAfee stands by his million dollar prediction as well.
But McAfee is not alone in this 1 million projection, a number of other experts support this figure. PlanB himself has called out that BTC would shoot past this target in its coming years.
Further, in the future, hyperbitcoiniztion, instead of Bitcoin’s value in US dollars, we could see other commodities being valued in BTC.
Interestingly, there are currently 16,772 addresses that contain over $1 million worth of Bitcoin.
With only 21 million BTC out there, the number of Bitcoin millionaires are limited and with that in mind, the current drop in value BTC is seeing looks the perfect opportunity to buy Bitcoin at a discount.