PlanB Maintains $ 100,000 Bitcoin Prediction, Reveals When Its Model Would Be Invalidated

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Quantitative analyst PlanB says he believes his year-end price predictions for Bitcoin will be met.

Speaking on the What Bitcoin Did podcast, PlanB says he remains confident in the stock-to-flow model he popularized in the cryptocurrency space.

The stock-flow model, typically used to value traditional assets, aims to predict the price by measuring the existing supply against the rate of production.

According to PlanB, Bitcoin will hit a six-figure price by the end of 2021.

“I never doubted. I still think it will be $ 100,000 at the end of the year, at a minimum. And there is a lot of time. Was at [$40,000] now. So it’s a 2.5x. We’ve done more in a month or two, historically. So it can be done. I am very confident …

I still see people on the internet claiming $ 20,000 worth of Bitcoin. I don’t think that’s going to happen.

[$100,000] by Christmas.

PlanB also says that with a model based on linear regression, in which the relationship between two variables is formed by applying a linear equation to the data, it is “easy” to determine when the stock-flow model is invalidated.

“It’s just linear regression, isn’t it? So it’s very obvious when this regression is no longer valid

[The stock-to-flow model] said we should increase with the stock-to-flow ratio which has increased since halving. So we kind of expect that. But when it stays low, so when we stay at $ 30,000, $ 20, $ 40,000 for a few years, say, a few months, it’s obvious that this linear regression line no longer matches the data.

It is very easy to see when it is invalidated. And people can do it themselves.

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