PlanB: Bitcoin will break 250,000 USD

Author: Hameiz; Source: Hameiz Digital Square

PlanB, a well-known expert in the cryptocurrency industry, has made the latest predictions about the Bitcoin market after major changes in fundamentals such as Trump's election as the US president.

On the social platform on November 9, the anonymous quantitative analyst informed fans that his stock-to-flow (S2F) model shows that Bitcoin (BTC) is now ready to start a series of big rebounds and may exceed $250,000 in the next few years.

PlanB's S2F model predicts the market performance of related assets based on the logic that prices rise as assets become more scarce. Previously, the model was used to predict the prices of traditional commodities.

Historically, PlanB's S2F model has signaled the start of a strong bull run immediately after the Bitcoin halving, when miners' rewards are halved and a red dot is printed.

“Bitcoin closed October at $70,000 and now, a few days after the election, it has reached $76,000, a new all-time high.

So, basically Bitcoin broke out of the $60,000 to $70,000 trading range it had been in for a month…If history is any guide and if the S2F model is any guide, then we are going to see a big price increase from here. The red dots will continue…

In short, based on the S2F model, I think the average price of Bitcoin over the next 4 years will be between $250,000 and $1 million.”

PlanB also said that there have been major bullish catalysts in the U.S., including the election of Donald Trump, a “very pro-Bitcoin” U.S. president. U.S. Senator Cynthia Lummis hopes Trump will support her Bitcoin Bill, which calls for the creation of a U.S. National Bitcoin Reserve by purchasing one million BTC over five years. PlanB also said that MicroStrategy founder and executive chairman Michael Saylor’s “$42 billion Bitcoin purchase plan over the next three years” could be a big boost for the flagship crypto asset.

Finally, he predicted that spot Bitcoin exchange-traded funds (ETFs) will continue to grow.

"Since Trump was elected president, Bitcoin ETF inflows have been huge and will increase in the future. Therefore, there are many reasons to explain the significant increase in Bitcoin prices from current levels."