One of the most recognizable names in the crypto industry PlanBis the creator of the Stock to Flow (S2F) model, one of the very popular Bitcoin indicators in the crypto space. However, the model has been disappointing since March 2021 due to the growing gap between the projected price and the current price.
of PlanB bitcoin Although the divergence between the model’s claimed price and the current price began in March 2020, right after the third halving, Bitcoin managed to catch up with the S2F model by January 2021.
However, this enthusiasm was short-lived, as a month later the price of BTC started to deviate from the pattern again and has remained well below the price of S2F ever since. The crash in May 2021, when the leading cryptocurrency fell nearly 44%, was the biggest factor in this divergence. Bitcoin somehow recovered by November and recorded an ATH of $67.5k. This gave investors hope that Bitcoin could reach $100,000 by the end of the year, but unfortunately that didn’t happen either.
This caused many to lose hope in the S2F model, as numerous external factors were not taken into account and invalidated the model according to current conditions. However, in yesterday’s tweets, PlanB 2023 He reiterated that he is behind the model, as he predicts it to reach $100,000 by the year 2020.
Both S2F and logarithmic regression point to $100K in 2023. pic.twitter.com/NHqoRpEmUl
— PlanB (@100trillionUSD) February 14, 2022
“What worries me is that the BTC price has consistently been below the S2F pattern since the last halving,” a Twitter user tweeted on PlanB’s tweet regarding the model’s recent failure. gave the answer. On the other hand, PlanB used the following statements:
“It doesn’t worry me yet, but it certainly raises the question: Do we need to readjust the model to this new low data, or do we need to be patient and end this cycle first as prices may be higher in the second half? Because prices may be higher in the second half of the cycle.”
Can Bitcoin Really Reach $100,000?
If we consider only the price action behavior, we can say that there is some chance. However, in order to do this, Bitcoin needs to be released in the next 10 months. 125.92%It will require an increase of . In the history of BTC’s year-end bull runs, there have been only two instances where such a rally has occurred. First in 2018, then in 2020. So giving it a full year would make it possible for the leading cryptocurrency to reach $100,000 by 2023.
However, it would be wrong not to take into account external developments as many countries are not currently in favor of cryptocurrencies. While most countries have not placed a direct ban, they are considering referring their citizens to CBDCs to maintain control over digital transactions. These events may block the possibility of “BTC to $100,000”. So how effective is it? It is too early to answer this yet, we will see it together in the coming days.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.