Advertisement
Advertisement

Bitcoin To Cross $100K by 2023 – Says PlanB, But Only if This Happens

By:
Aaryamann Shrivastava

While the infamous Stock to Flow model hasn’t been up to the mark over the last couple of months, PlanB continues to remain confident in its formula.

Bitcoin To Cross $100K by 2023 – Says PlanB, But Only if This Happens

One of the most well-known names in the crypto industry, PlanB, is responsible for creating one of the most well-known Bitcoin indicators in the crypto space, the Stock-to-Flow (S2F) model.

The model however has been on a streak of disappointment since March 2021 due to the increased difference between the predicted price and the current price.

PlanB’s Next Plan for Bitcoin

Although the deviation began in March July 2020 right after the third halving, Bitcoin managed to catch up with the S2F model by January 2021.

However, that euphoria was short-lived as just after a month, BTC’s price began deviating again and has since remained far below the S2F price.

The crash of May 2021 when the king coin dropped by about 44%, was the biggest factor in this divergence.

Bitcoin somehow recovered again by November and marked an ATH of $67.5k reinvigorating hope into investors for Bitcoin to reach $100k by year-end but sadly that never happened either.

Bitcoin S2F model still predicts Bitcoin to be at $100k | Source: Glassnode

This led to a lot of people losing hope in the S2F model as a multitude of external factors were not taken into consideration making the model obsolete to current conditions.

But PlanB in their tweet yesterday seemed to be certain in the model, as it predicts Bitcoin to touch $100k by 2023.

On a Twitter user’s concern of the model’s recent failure, PlanB replied:

“It does not concern me yet, but it certainly leads to the question: do we need to refit the model to this new lower data, or do we have to be patient and finish this cycle first because prices can be higher in the 2nd half of the cycle (bringing the average back to $100K)”

Can Bitcoin Actually Hit $100K Though?

If we simply consider the price action behavior, there would be some chance. But in order to do that, Bitcoin will have to make a 125.92% rise within the next 10 months.

Bitcoin needs to rally by 125.92% in order to reach $100k – Source: FXEMPIRE

In BTC’s history of year-end bull runs, there have only been two instances when such a rally took place. First in 2018, then in 2020. 

Thus giving it an entire year’s time makes it seem possible for the king coin to reach $100k by 2023.

However, not factoring in the external developments would be irresponsible since a lot of countries are not in favour of cryptocurrencies right now.

And while most haven’t outright placed a ban, they are looking into transitioning their citizens towards CBDCs in order to maintain control over the digital transactions.

These occurrences could hamper the possibility of “BTC to $100k” happening. How severely? That is yet to be found out.

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

Did you find this article useful?

Advertisement