The creator of the Stock To Flow model believes that BTC will reach $100,000

Cryptocurrency anonymous analyst known under the pseudonym PlanB reported that the price of bitcoin, in his opinion, should rise to $100,000 after the main crypto asset goes through the next halving process. He said this in an interview with cryptocurrency trader Benjamin Cowen.

According to PlanB, although the market is going through a crypto winter, which is exacerbated by the situation with the fall of the FTX exchange, bitcoin still has a year and a half before the start of the next halving. He also shared his other interesting thoughts. According to PlanB, the easing of monetary policy can also positively affect the growth of bitcoin.

At the time of writing, the cost of one BTC is $16,500+. The flagship cryptocurrency has risen almost $1,000 over the past 3 days. On November 22, the price of Bitcoin was $15,600.

Halving is a reduction in the reward to miners for mining bitcoin in a block that was originally embedded in the code. Since the advent of bitcoin, miners have earned 50 BTC per block. On November 28, 2012, the first halving took place, and then the number of mined bitcoins per block was reduced to 25 units. On July 9, 2016, another halving happened, as a result of which miners began to mine not 25, but 12.5 BTC per block. On May 11, 2020, production dropped to 6.25 BTC per block. The next halving is expected in May 2024. The number of mined bitcoins per block will be reduced to 3.125 BTC.

According to cryptocurrency expert PlanB, the logarithmic regression will have to intersect with the Stock To Flow model he developed. At this very moment, BTC will have to overcome the mark of $100,000 in value per 1 unit. He made this conclusion because Stock To Flow tries to predict the price of the main crypto asset by measuring the relationship between the available stocks of the asset and the volume of production of bitcoin.

PlanB specifically pointed out that after the flagship crypto asset out-hit and breaks all records, the bottom in the bear market is found after 18 months. So it was in 2015, and in 2019 and in 2022, as we can see. According to the creator of Stock To Flow, bitcoin will start to rise no later than in 3 months, as we are already starting to find the bottom.

Many analysts have been interviewed by various media, but most of them believe that bitcoin, although it really will overcome the $100,000 mark, will do so in 2024-2025.

As for the halving, miners usually begin the stage of accumulating their coins before it, in order to then massively sell the funds and get a good profit for it. Until they decide to sell bitcoin, the market creates a shortage of the main crypto asset, due to which the price begins to rise sharply in anticipation of mining. Experts suggest that this time everything can happen according to such a scenario.

For the most part, PlanB's forecasts should be treated with the same skepticism as its Stock To Flow model. On November 10 last year, he announced that Bitcoin could rise to $500,000 by the beginning of 2022. After that, he said that if you believe his Stock To Flow system, then the price tag of the main crypto asset could become six-figure by the summer of this year, and in early May he announced that bitcoin would not reach $100,000 in the summer, but up to $55,000.