BTC may reach $100,000 before Dec 2021, says analyst
11 Feb 2020
Bitcoin could move under its 200-week moving average (200WMA) price, but remain over $8,200.
This is according to one of the cryptocurrency industry’s most-respected analysts, PlanB, who created the stock-to-flow Bitcoin price forecasting tool, and forecasts BTC/USD would trade “above $10,000” by May.
This is about the time of Bitcoin’s block reward halving, reports Coin Telegraph, which would begin the “bull run”, sending the world’s largest cryptocurrency by market cap to $100,000 before December 2021.
PlanB announced the predictions, calling them his “2 sats on Bitcoin price.” In January last year, the analyst said BTC/USD would remain over its 200-week moving average, which had always previously grown.
That 200WMA growth rate was 3% in December and has increased to around 4% currently.
As it stands, Bitcoin is just under $10,000, which means it is 14% higher than the $8,600 level that stock-to-flow dictates, says the Coin Telegraph report.
Stock-to-flow utilises two indicators to monitor the price trajectory of Bitcoin; this is the number of Bitcoins available versus the number of new Bitcoins added to circulation.
This puts BTC in line with gold in terms of its status as hard money, with a supply practically impossible to manipulate, unlike as is the case with fiat currency.
This was echoed by deVere founder and CEO Nigel Green recently: “Known as ‘digital gold’, Bitcoin shares the same traits as the precious metal, such as it being a store of value, scarce, regarded as inflation-resistant and a hedge against turmoil in traditional markets.”
Over the long-term PlanB forecasts BTC/USD to trade around $100,000 on average between 2021 and 2024. Following this, Bitcoin may appreciate to “a factor” of $100,000 due to the weakness of fiat currency.
Nigel Green added: “Whilst we’ve seen the coronavirus and ongoing geopolitical tensions emphasising the reputation of cryptocurrencies like Bitcoin as safe havens, they are also key drivers for the reasons why digital currencies are being recognised more and more as the future of money.
“These other drivers include the fact they are digital, global and solve real-life problems. Moreover, an increasing number of tech and institutional investors are opting for digital currencies, and with the expansion of the native digital generation, global demographics are also on the side of crypto.
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