A bitcoin price prediction made more than three months ago has proven to be less than 1% off its intended targets, prompting followers to call it “amazingly accurate.” BTC is expected to reach $135,000 by the end of the year.
The price prediction was made by pseudonymous cryptocurrency analyst PlanB, who predicted in June that the flagship cryptocurrency’s price would end the month of September at $43,000, up from $47,000 at the end of August.
Bitcoin is below $34K, triggered by Elon Musk's energy FUD and China's mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (Beware of impersonators, I don't DM) (@100trillionUSD) June 20, 2021
PlanB’s prediction proved to be extremely accurate, falling less than 1% short of its targets in both months. In September, for example, bitcoin was trading at $43,150. PlanB bases his bitcoin price predictions on on-chain metrics and his stock-to-flow model.
The Stock-to-flow (S2F) model is a ratio that compares the amount of bitcoin in circulation (stock) to its production (flow) in order to determine its abundance and predict its future price. Bitcoin’s supply is limited to 21 million units, and its flow is halved every four years in a process known as halvening.
According to PlanB, the cryptocurrency will rise to $63,000 this month, approaching its previous all-time high of $64,000 set in April. By November, he expects the cryptocurrency to trade at $98,000, and only in December does he expect it to break six figures and reach $135,000.
Bobby Lee, a cryptocurrency industry veteran who co-founded the BTCC exchange and is the brother of Litecoin creator Charlie Lee, stated in an interview that he expects bitcoin to experience a rally driven by fear of missing out (FOMO) by the end of the year, pushing its price above $100,000.
Similarly, Meltem Demirors, Chief Strategy Officer at digital asset investment firm CoinShares, predicted that the cryptocurrency would reach $100,000 by the end of the year. According to PlanB, his forecasts “can be destroyed by a black swan event, such as a bitcoin ban, Covid escalation, war with China, etc.”
According to the analyst, potential triggers for the next leg up in the bull run could include the approval of an exchange-traded fund (ETF), El Salvador’s “success spreading,” or favorable legislation being passed. PlanB also predicts that there will be a “complete lack of sellers” in the coming months.