A fresh analysis of the Bitcoin price using the revamped Stock-to-Flow model has made a bold prediction that the cryptocurrency is set to reach a new all-time high by 2024. The latest price model follows a series of some previous bold forecasts made previously using the very popular Bitcoin analysis tool.
The new bold prediction resulted from fresh calculations made by Twitter-based crypto analyst, Plan B on April 27. This was the third instalment of the stock-to-flow (S2F) model forecast that pushed the previous predictions higher. The model was initially used to predict bitcoin’s price in May 2019 arriving at a projection of $55,000 per coin by 2020 or 2021. The model was revised with the second prediction suggesting the price could reach $100,000 within 2 years of its April 2020 calculations. Even the recent 50% decline fell within the predicted range by the model.
Now, the third incarnation of the S2F model is making a prediction that is almost triple its preceding forecast. According to PlanB the leading virtual asset will peak at $288K by 2024. The S2F makes future value forecasts by computing the supply of newly generated bitcoins via mining against the existing stock of coins in circulation. Subsequently, the price is pushed higher by declining supply and consistent or increasing demand. With the halving just a couple of weeks away, it is expected that the new supply will drop sharply by half whilst demand is expected to remain the same or even rise further. This is expected to be the primary driver and catalyst for a sharp bitcoin price surge.
Throughout its existence, the S2F model has been very controversial with critics repeatedly questioning its huge predictions versus the real bitcoin price. Twitter-based crypto investor J0E007 applauded PlanB’s inclusion of more assets like gold and silver in the new model citing it as solid work. Nonetheless, the investor questioned the lack of other cryptocurrencies in the new calculations.
Proponents of the model remained positive by expressing agreement with the huge prediction an indication that the crypto community is largely bullish about bitcoin’s price. Renowned Bitcoin author Saifedean Ammous tweeted that he had similar thoughts about Bitcoin not being a Veblen good.
Thanks for this, very interesting. I was thinking of something similar when explaining why I don't think bitcoin (or anything) is a Veblen good. https://t.co/PTnLmsMnWx
— Saifedean.com (@saifedean) April 28, 2020
The agreement in opinion between the two bitcoin experts implies there is potential for a price surge in the medium term which will be welcome news for bitcoin investors and enthusiasts at large.
Image courtesy of Pixabay
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