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Could the price of Bitcoin reach $100,000 by 2021?

PlanB analyst was able to determine not only the current and future scarcity/hardness of BTC, but also a possible Bitcoin price. A price target for August 2021 of $100,000 per BTC was set, using the Stock-to-Flow model. If the model continues to prove true, Bitcoin will reach a price of about $100,000 by the end of next year. Nevertheless, there is much to such a BTC course than a simple model.

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This picture show a person holding a Bitcoin.

Exactly 2 weeks ago, the price of Bitcoin broke out of its long sideways movement and left the hard-fought $9,000 mark behind it for the time being. Within 10 days, the price of Bitcoin has risen up to $12,000. However, the BTC price could not stay at this level for a long time and fell back towards $11,000. Much more interesting in this development is that the Bitcoin price is almost following the Stock-to-Flow forecast of the analyst PlanB. Let’s have a look at what this means for the BTC price.

If you want to find more details about the price of Bitcoin and the Stock-to-Flow model the course is currently following, download for free the Born2Invest mobile app. Our companion app brings you the latest market trends, stock analysis, and business news in the world, for you to stay on top of the market.

Bitcoin’s price currently follows the Stock-to-Flow model

By now everyone should be familiar with the PlanB Stock-to-Flow model. The analyst applied the S2F ratio to Bitcoin for the first time and became famous in the crypto community. This ratio has already been used for precious metals in the past to determine the scarcity and to deduce whether the respective precious metal is suitable as a store of value.

In his model, however, he was able to determine not only the current and future scarcity/hardness of BTC, but also a possible Bitcoin price. A price target for August 2021 of $100,000 per BTC was set. Currently, the price of Bitcoin follows the model almost exactly.

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PlanB will publish a corresponding chart in the following days. The red dots will indicate how far away Bitcoin is from the next halving and will gradually change color. There will always be a new point as soon as another month has passed since the last halving. Meanwhile, we are in the third month after the halving and the price of Bitcoin is currently as predicted by PlanB and its Stock-to-Flow model.

After 2024, Bitcoin could be the best store of value

So if the model continues to prove true, Bitcoin will reach a price of about $100,000 by the end of next year. In addition, the S2F ratio of BTC is increasing day by day and will suddenly double at the next halving in 2024. This means that Bitcoin will officially be harder than gold and thus in theory a better store of value.

Nevertheless, there is much more to such a BTC course than a simple model. There are many other factors that influence the price of Bitcoin. Among them are technical developments, adoption, interest from institutional investors and the rising inflation of FIAT currencies. However, all these factors are currently more than positive and provide additional support for PlanB’s price target.

Whether the price of Bitcoin will reach $100,000 next year is still to be seen. Only one thing is certain – as soon as the Bitcoin exchange rate breaks through the $20,000, another wave of speculators will enter the market. Because then, theoretically, investors would never have made losses with BTC.

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(Featured image by Crypto Crow via Pexels)

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.