Crypto analyst PlanB has published an updated stock-to-flow model for bitcoin which predicts the price reaching $288,000 by 2024.
In a Medium post published April 27, popular crypto analyst PlanB provided an updated model for his application of stock-to-flow (S2F) to the price of bitcoin. S2F calculates a value for bitcoin based upon new BTC entering the market via mining compared to the existing circulating supply.
According to the post, PlanB’s original algorithm was a “time series model” based on monthly S2F and price data. The most recent update, titled S2FX, provides a model with “activated quantitative analysis” that includes additional assets such as silver and gold.
The post reads,
With the phase transition perspective of BTC clusters as different assets, I can now add other assets like silver and gold to the model. This makes it a real cross asset model. I call this new model the BTC S2F cross asset (S2FX) model. S2FX model enables valuation of different assets like silver, gold and BTC with one formula.
PlanB argued bitcoin and other assets transition through “phases,” and that the properties of each phase dictate market performance. According to the updated S2FX, bitcoin is on track to reach a market capitalization of $5.5 trillion, with the model predicting the price of BTC at $288,000 by 2024.
As CryptoGlobe reported, VC and well-known bitcoin advocate Tim Draper predicted the price of the cryptocurrency will hit $250,000 by 2023.
Featured Image Credit: Photo via Pixabay.com