PlanB: Bitcoin set to reach $100,000–$288,000 by December 2021

The popular blogger PlanB has reiterated that he remains faithful to his forecast that Bitcoin will reach $100,000–$288,000 by December 2021. He found further evidence in support of a supply squeeze, in line with the Stock-to-Flow (S2F) model on which his expectations rest.

People ask if I still believe in my model. To be clear: I have no doubt whatsoever that #bitcoin S2FX is correct and #bitcoin will tap $100K-288K before Dec2021. In fact I have new data that confirms the supply shortage is real. IMO 2021 will be spectacular. Not financial advice! pic.twitter.com/GNSxLIt7NG

— PlanB (@100trillionUSD) November 8, 2020

The expert drew an analogy to a star colliding with a black hole. PlanB noted that during periods of market corrections he observes Bitcoin whales’ algorithms accumulate hundreds of 0.01 BTC slices from weak hands. In the longer term, these coins disappear into deep cold storage.

Now watch how those Bitcoins that some dumb weak hand sellers sold in big chucks last 4 hours will be sucked up by strong hand buyers with hundreds of smart small 0.01 BTC algo buys. Those BTC will disappear in deep cold storage🌪️ pic.twitter.com/4vTWeZk1yD

— PlanB (@100trillionUSD) November 9, 2020

S2F is used to determine scarcity or surplus of an asset and is calculated as its current supply divided by new issuance over the specified time window.

According to the S2F model, moving Bitcoins to long-term storage wallets reduces selling. This is especially true after the halving, which triggers a supply shock and spurs a bull market over the following 18-20 months. This was characteristic of the first and second halvings in 2012 and 2016.

Earlier in October, Charlie Morris, head of ByteTree’s analytics service, doubted that the S2F model works.

In June, Ethereum co-founder Vitalik Buterin criticized the S2F model.

Astrology and Marketing: Analysts criticized the Stock-to-Flow model for Bitcoin

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