The price of Bitcoin will remain in an uptrend and will reach all-time highs in a staggered manner. Futures ETFs and inflation are positively impacting the price of BTC.
Analyst PlanB estimates that the price of Bitcoin (BTC) will reach USD 98,000 in November and will exceed USD 130,000 before 2020. The researcher uses the Stock-to-Flow (S2F) model to predict the value of the cryptocurrency in the coming months. In this regard, he says that Christmas will be beautiful this year.
PlanB recently spoke about the level of accuracy of its prediction model. He recalled that he had said the price of Bitcoin would close above USD 40,000 in August. In addition, he noted that he had forecast it would drop a bit in September but close above USD 63,000 in October.
Since 2012, the price of Bitcoin has met the parameters set in the Stock-to-Flow model. Based on it, he estimates that the cryptocurrency will be worth USD 135,000 in December.
However, the followers of PlanB have lost confidence in their predictions due to considerable corrections the price of the cryptocurrency. That happened in June, but the public believes once again in his estimates.
The S2F model builds on the theory that Bitcoin is a store of value like gold or silver. Those precious metals retain their value in the long term due to their relative scarcity. PlanB correlates the stock or quantity of available assets with the flow or amount of Bitcoin mined annually. Based on that, he projects where the price of the pioneering cryptocurrency can go.
Launch of ETFs in the United States Impacts Bitcoin Positively
On October 20th, the price of BTC set a new all-time high, exceeding USD 67,000. PlanB believes that the launch of Bitcoin exchange-traded funds (ETFs) in the United States contributed to this.
The market analyst noted that the community has been waiting for ETFs for a long time. In addition, he considers that they have positively impacted the market for that reason. He said that this is the SEC’s first step toward an instrument it understands well, like ETFs. However, he commented that those investment tools were not as good as cash.
According to the researcher, another factor that is greatly influencing the price of Bitcoin is inflation. He stated that the US Federal Reserve (FED) printed a lot of money to provide relief aid. He argued that the prices of all products have risen, including Bitcoin.
Based on the elements that come together to increase the price of BTC, PlanB does not foresee a considerable correction in the short term. Regardless, he believes that the Bitcoin market is not yet mature enough to reduce its volatility.
PlanB expressed that he believes people are still in the grip of greed and fear but the time for a change will come. He said that could happen during the next halving or after 2024 when Bitcoin becomes a global reserve currency.
By Alexander Salazar
