The developer of the stock-to-flow (S2F) asset price analysis system, PlanB, has stressed once again that Bitcoin (BTC) is on course to reach $100,000. The unidentified analyst anticipates the king of crypto to reach the $100,000 to $288,000 range by December next year.
Bitcoin would have to gain by roughly 545% from the prevailing price to breach $100,000. At that price level, the market cap of Bitcoin would be almost $2 trillion, matching the market cap of world’s largest tech company Apple.
The S2F model endeavors to forecast the long-term price direction of Bitcoin by assessing its supply. In particular, the model looks at the pre-determined supply and block reward halving, which trims the rate at which fresh Bitcoin is generated or “mined.”
The S2F model is based on the premise that inflation would continue to increase while the Bitcoin supply decreases over time. These two arguments could provide the necessary boost to the crypto’s price.
On the basis of Bitcoin’s halving cycles and supply curve, S2F computes the likely valuation of Bitcoin to be $5.50 trillion. The model forecasts multi-trillion-dollar valuation for Bitcoin before the end of 2024. As per the model:
“S2FX model estimates a market value of the next BTC phase/cluster (BTC S2F will be 56 in 2020–2024) of $5.5T. This translates into a BTC price (given 19M BTC in 2020–2024) of $288K.”
Through a tweet, PlanB stated that he is convinced that the S2F model’s $100,000 price forecast for Bitcoin would happen. The coming year is very crucial for Bitcoin