PlanB explains why he sees bitcoin trading at $5 million in the future and for that, he is not selling his BTC.
PlanB, a quantitative Bitcoin analyst and the creator of the popular stock-to-flow (S2F) model, is still very much bullish about the future of the leading cryptocurrency.
The drop in bitcoin’s price within the last three months has raised many questions among crypto traders and analysts on whether or not the bull market is still intact. However, PlanB is unconcerned about the current market trends, and he is looking ahead to what’s to come.
For clarity, the stock-to-flow model uses multiple variables like bitcoin’s production, supply, and evolution to predict the price of the cryptocurrency.
PlanB: Bitcoin Price at $5M is a Real Possibility
In a recent interview with Scott Melker, popularly known as The Wolf Of All Streets, the S2F model creator gave reasons why he believes bitcoin will trade as high as $5 million per coin in years to come.
According to him, retracements are a normal cycle for the king coin, and the ATH of one year could be reached in another. But PlanB believes the years after the next Bitcoin halving will be much more interesting for the cryptocurrency than the next two years.
“Maybe that all-time high could be reached this year and the low the year after in 2022 but after that there will be another halving in 2024. So 2025 and the years after that will be actually much much more interesting than the next two years. And yes, the S2F models predict prices ranging from $1 million (for the normal stock flow model) to 5 million (for the stock flow x model),” PlanB explained.
PlanB Says He’s Not Selling
Bitcoin has a long way to go if it will ever reach the S2F model price target of $5 million. Although the model previously predicted that the cryptocurrency would trade at $100,000 by August this year and possibly $288,000 by the end of 2021, PlanB said he is more interested in the long ride to the million-dollar price levels.
According to him, he will hold on to his bitcoin bags and will only sell small, if need be, to survive the bear market.
“My eyes are, by the way, on those price levels ($1m to $5m) more than on the $100k to $288k so I’m not selling. Maybe some to just survive the bear market but yeah,” he said.
Meanwhile, as many continue to wonder if the 2021 bull run is over, PlanB recently predicted that $64,000 was not the top for bitcoin. According to the quantitative analyst, on-chain data and his floor indicator show that the crypto asset will not trade below $47,000 by the end of August.