Popular quantitative analyst PlanB, known for its stock-to-flow Bitcoin (BTC) model, expresses bullish sentiment for the flagship crypto-asset.
In a new interview with cryptocurrency trader Benjamin Cowen, PlanB says that while current crypto sentiment is bearish due to the meltdown of digital asset exchange FTX, he wouldn’t be shocked if the cryptocurrency king hit $100,000 after another halving.
According to PlanB, catalysts that could trigger a massive rally for Bitcoin include the end of the Russia-Ukraine war or the easing of monetary policies.
“I know it doesn’t look too good right now. [collapse of] FTX and all customer and investor impacts [of] FTX, but we have a year and a half ahead of us [before the next halving].
So once QE starts, or the war in Russia and Ukraine ends, or whatever is there, we could easily achieve [$100,000]. Let’s say 2024, where the log regression and the stock-to-flow model are coupled, which is in the region of $100,000. Yes, I wouldn’t be surprised.”
The stock-to-flow model predicts changes in the value of an asset by comparing its current price with the rate at which its supply is generated.
As for whether the crypto market has bottomed out, PlanB says that bitcoin typically hits a bear market low about 18 months after it hits an all-time high. He notes that a bottom could form sometime in the next three months.
“The bottom of the bear market is also about a year, one and a half years after the all-time highs. And this is still true today. It was true in 2019, in 2015, it is true today in 2022. But from the bottom of the bear market, once we hit the bottom, it will go up.
So the rise, if you will, doesn’t start at the halving or after the halving. It starts when the bottom of the bear market is reached. And that could be today. Or next month. Or maybe in three months. But it will come.”
Bitcoin is changing hands at $16,551 at the time of writing, representing a 2.2% gain for the day.
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