Popular blogger PlanB has confirmed that it remains true to its forecast that the price of the first cryptocurrency will rise to $ 100,000- $ 288,000 by December 2021. He found additional evidence for a shrinking coin supply, which is consistent with the Stock-to-Flow (S2F) model on which his expectations are based.
People ask if I still believe in my model. To be clear: I have no doubt whatsoever that #bitcoin S2FX is correct and #bitcoin will tap $ 100K-288K before Dec2021. In fact I have new data that confirms the supply shortage is real. IMO 2021 will be spectacular. Not financial advice! pic.twitter.com/GNSxLIt7NG
– PlanB (@ 100trillionUSD) November 8, 2020
The expert gave the analogy of a collision of a star with a black hole. PlanB noted that during periods of market corrections, it observes how Bitcoin whale algorithms pick up hundreds of portions of 0.01 BTC from “Weak hands”… Later, in larger forms, the coins “disappear” in “deep” cold storage facilities.
Now watch how those bitcoins that some dumb weak hand sellers sold in big chucks last 4 hours will be sucked up by strong hand buyers with hundreds of smart small 0.01 BTC algo buys. Those BTC will disappear in deep cold storage🌪️ pic.twitter.com/4vTWeZk1yD
– PlanB (@ 100trillionUSD) November 9, 2020
S2F is used to determine the deficit or surplus of an asset and is calculated as its current supply divided by the new issue for a specified time period.
According to the S2F model, moving bitcoins to wallets for long-term storage leads to a decrease in their sales. This is especially true for the period after the halving, which leads to a supply shock and provokes a bull market for the next 18-20 months. This was the case for the first and second halving of miner awards in 2012 and 2016.
According to PlanB, the dynamics of bitcoin after the third halving in May 2020 confirms its correctness and is developing like clockwork. Six months later, the price approached the $ 16,000 mark, adding almost 80%.
#bitcoin like clockwork pic.twitter.com/kWBSEhCrzN
– PlanB (@ 100trillionUSD) November 9, 2020
The blogger sees confirmation of his expectations in the acquisition of bitcoin by investor and billionaire Stanley Druckenmiller. Prior to that, such signals for him, in particular, were similar actions by the management company Stone Ridge Holdings Group, as well as the approval by Iran of a mechanism for paying for imports with the bitcoins mined in the country.
# phase5 https://t.co/2LDkGwgryl
– PlanB (@ 100trillionUSD) November 9, 2020
The S2F model assumes that, nine months after the halving, 100% of coin holders will be in profit, which could trigger an increase in supply that will absorb demand. In the future, in the context of generating new demand, sellers may not return to the market for the next several weeks or months, which will cause a new acceleration of growth.
Recall that in early October, the head of the analytical service ByteTree Charlie Morris doubted that the S2F model works.
In June, the S2F model was also criticized by Ethereum co-founder Vitalik Buterin.
Astrology and Marketing: Analysts Criticize Bitcoin’s Stock-to-Flow Model
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