A publication by Plan B On Twitter it shows that the price of Bitcoin in the market can be given as $ 18,000. To achieve this value The analyst correlates the cryptocurrency with SP 500 stocks using the stock-to-flow forecasting model.
According to the expert The price for Bitcoin should be around $ 18,000 in the market after tracking the performance of SP 500 sharesThe cryptocurrency is currently only worth $ 9,500, or almost 50% of the price forecast for Plan B in the profile forecast.
Based on the Bitcoin issue and cryptocurrency offering in the market, the stock-to-flow theory predicts that the asset will trade up to $ 288,000. The expert who created the forecast model points out that the asset correlates with the SP 500 in the financial market.
Will the price of Bitcoin rise to $ 18,000?
Plan B published an analysis on social networks on the price of Bitcoin on Tuesday (16). For the analyst, the cryptocurrency follows the SP 500 stocks on the market.
The correlation between the two assets is perceived by the expert who uses the theory of the stock-to-flow forecasting model to calculate the market value of the cryptocurrency.
According to Plan B calculations, the price of Bitcoin should therefore reach $ 18,000 if the performance of SP 500 stocks is tracked. An enthusiast of the cryptocurrency market commented on the forecast published on Twitter.
According to the investor The price of $ 18,000 would be fair for Bitcoin compared to the SP 500 on the market.
“The gray line (in the graphic) models the price of Bitcoin over the SP 500.
If the model (stock-to-flow) applies, the fair price will be $ 18,000 and the price will come at some point. “
Stock-to-flow bet for $ 288,000
The stock-to-flow forecasting model was created by Plan B to track the performance of the cryptocurrency in the market. The analyst uses this theory to explain what the asset’s value will be up to $ 288,000.
Every four years, halving reduces the issuance and supply of Bitcoin on the market, and the event supports the stock-to-flow theory. The same theory made predictions about cryptocurrency after halving in 2012 and 2016.
According to the forecast model, Bitcoin could reach up to $ 288,000 before halving by 2024. The crypto will see an appreciation in the coming years and theoretically break price records.
On the other hand, the same theory, which expects a sharp rise in prices, will soon represent an enormous devaluation for BTC, as the crosspoint revealed.
Another analysis, published on social media and using the same stock-to-flow model, shows that Bitcoin can be traded in the market for just $ 5,900.
After a huge devaluation, however, the cryptocurrency will experience a major recovery that will break records, the theory says. The graph shows that Bitcoin’s price will hit a record high in the market as it trades at $ 256,000 after dropping to $ 5,900.