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Price Of Bitcoin Will Hit $130,000 In December, Says Analysts Of Plan B

Background concept with Bitcoins. very high resolution jpeg image (Full HD) and EPS vector file.

According to analysts of Plan B, the price of Bitcoin (BTC) will rise to USD 98,000 in November and will surpass USD 130,000 by the end of 2021. The researcher is using the well-known Stock To Flow model (S2F). to forecast the value of Bitcoin in the coming months, and on this he remarks, “It will be a very wonderful Christmas this year.”

Plan B was a guest on the “Unchained” programme on Sunday, October 24, where he discussed the precision of his prediction model. “I had already predicted that the price of bitcoin would close above USD 40,000 in August, that it would fall somewhat in September, and that it would close above USD 63,000 in October,” the expert stated.

Indeed, as shown in the graph below, the price of bitcoin has followed the criteria defined in the Stock To Flow model since 2012. Based on this, he predicts that the cryptocurrency will cost $135,000 in December of next year.

However, the dramatic corrections in the cryptocurrency’s price have caused Plan B adherents to lose faith in its projections, as happened in June. The public has now returned to believing in his estimates.

The S2F model is predicated on the assumption that bitcoin, like gold or silver, is a store of value that retains its worth over time due to its scarcity. So, according to this theory, Plan B correlates the stock or number of assets already available with the flow or amount of bitcoins created annually, and then estimates where the cryptocurrency’s price can go based on that.

According to CryptoNews, the price of Bitcoin (BTC) surpassed $67,000 for the first time on Wednesday, October 20. In this regard, Plan B believes that the introduction of bitcoin exchange-traded funds (ETFs) in the United States is positively influencing the cryptocurrency’s price.

“ETFs were something that we have all been waiting for for a long time and that is why they positively impact the market. It is true that it is the first step that the SEC takes with an instrument that it understands well as ETFs, although I understand that these investment tools are not as good as cash.” says Plan B, bitcoin market analyst

 

The researcher also mentions inflation as another factor that is greatly influencing the price of bitcoin. It is because “the Federal Reserve of the United States printed a lot of money to give aid and now the prices of all products are rising, even that of bitcoin,” he added.

Plan B makes it difficult for a major correction to occur, at least in the short term, based on all of the variables that are coming together today for the price of BTC to climb. If anything, it is evident that the bitcoin market has not yet matured sufficiently to lessen volatility.

“I think we are still in the grip of greed and fear, but I do know that the time will come, perhaps it will be for the next halving, or after 2024, in which bitcoin will become a global reserve currency,” he said.