There have been all kinds of Bitcoin-related predictions during the past days, and most of them are pretty bullish.
The latest one comes from PlanB, who is the analyst who first applied the stock-to-flow model to Bitcoin. He said that BTC is set to rise five times above the current level.
BTC to hit $288k
PlanB basically says that BTC will blow above the $100k price level that’s predicted by the original S2F model. He said that the price would rise above $288k, which is the target price of his already modified S2FX forecast.
December close: $28,992
January close: $33,141
February close: $45,240
March 17 price: $55,000
We are only 3.5 months into the #bitcoin bull market. IMO BTC will not stop at $100K and will continue to S2FX $288K average price level (ATH will be higher). pic.twitter.com/skS6a7pepu
— PlanB (@100trillionUSD) March 17, 2021
Someone asked: “@100trillionUSD you mean there is a possibility that we will hit 288k this year?” and PlanB responded with: “well 288 is the average for this 4yr cycle, so I guessed that we should be somewhere at that level by December this year, otherwise it will be difficult to keep the 4yr average at 288. That is the only reason I mention Dec 2021 frequently.”
As the online publication, the Daily Hodl notes, “The S2F model compares the amount of a commodity in circulation divided by the amount produced every year. It is traditionally used to analyze the intrinsic value of precious metals such as gold and silver.”
The same online publication reminds readers that PlanB published his most recent S2FX model back in April of 2020 where he predicted that Bitcoin will reach a market capitalization of $5.5 trillion and a price of $288,000 between 2020 and 2024 (when the next halving will occur). At the time BTC was hovering below $9,000.
Pay attention to the risk/reward ratio
PlanB also believes anyone who wants to add Bitcoin to their portfolio should pay attention to its risk/reward ratio.
“Key thing is not Bitcoin’s high risk/volatility, but that return is higher than risk, the asymmetry. Even if you only invest 5% of your portfolio (and thus can only max lose 5%), average portfolio return is +20%. BTC is the only asset I know with this large asymmetry.”
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $57,970.48.