A Plan B publication on Twitter shows that the price of Bitcoin can be quoted at $18,000 in the market. To achieve this value, the analyst correlates the crypto currency with the S&P 500 shares using the Stock-to-Flow forecasting model.
According to the expert, Bitcoin’s price should be quoted at $18,000 in the market after following the performance of the S&P 500 shares. However, the cryptomoney is currently only worth $9,500, or almost 50% of the price forecast in the Plan B profile.
Based on the Bitcoin issue and the cryptomoney offering in the market, the Stock-to-Flow theory predicts that the asset will trade up to $288,000. The expert who created the forecast model points out that the asset is correlated with the S&P 500 in the financial market.
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Will the price of Bitcoin go up to $18,000?
Plan B published an analysis on social networks on Tuesday (16) about the price of Bitcoin. For the analyst, the cryptomoney is following the S&P 500 shares in the market.
The correlation between the two assets is perceived by the expert who uses the theory of the Stock-to-Flow forecast model to calculate the market value of the cryptomoney.
Thus, according to Plan B’s calculations, Bitcoin’s price should reach $18,000 when the S&P 500’s stock performance is followed. An enthusiast of the crypto currency market commented on the forecast published on Twitter.
According to the investor, the price of $18,000 would be fair for Bitcoin relative to the S&P 500 in the market.
„The gray line (in the graph) is modeling the price of Bitcoin across the S&P 500.
If the model (Stock-to-Flow) is true, the fair price is $18,000 and the price will eventually come to that.
Stock-to-Flow bet for $288,000
The Stock-to-Flow forecasting model was created by Plan B to track the performance of cryptomoney in the market. The analyst uses this theory to explain how the asset will be worth up to $288,000.
Every four years the halving reduces the emission and supply of Bitcoin in the market and the Stock-to-Flow theory is supported by this event. This same theory has already made predictions about cryptomonality after the 2012 and 2016 halves.
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According to the forecast model, Bitcoin could reach up to $288,000 before the mid-term reduction in 2024. Accumulating an appreciation in the next few years, the crypt will break price records according to the theory.
On the other hand, this same theory that expects a big price increase also presents a huge devaluation for the BTC soon, as revealed by the Cointelegraph.
Another analysis published on social networks and using the same Stock-to-Flow model shows that Bitcoin can trade at only $5,900 in the market.
However, after suffering a huge devaluation, the cryptomoney will face a Crypto Comeback Pro, record-breaking recovery, the theory goes. The chart shows that the price of Bitcoin will reach a record high in the market, as it is trading at $256,000 after falling to $5,900.