Popular crypto analyst, PlanB has disclosed that the next Bitcoin halving will spark an explosive bull run. The quantitative crypto analyst noted that the next halving will increase the scarcity of Bitcoin and thereby pump the price.
In a new video shared on Twitter, PlanB updates his BTC’s stock-to-flow ratio, which is typically used to forecast the future price of scarce commodities.
The stock-to-flow ratio is essentially calculated by dividing the amount of BTC in circulation by the amount of Bitcoin mined per year.
Investors King understands that the next Bitcoin halving is in 2024 and it is expected to reduce the amount of new supply entering the market. Thus PlanB believes this will be a key catalyst that will spark an explosive BTC bull run.
According to PlanB, using his stock-to-flow models, Bitcoin’s next top will likely be in the $100,000 to $1,000,000 range.
He said, “My forward guidance for the next three years is that the 2024 halving is coming… and the halving increases scarcity [and] pumps the Bitcoin price, just like it did last three halvings”.
“And I said it will be higher than $100,000, which is the bottom end of the bandwidth. But in fact, I guess it will be between $100,000 and $1 million. And the stock-to-flow model is indicating $500,000.”
The analyst however justifies his wide price projection, stating it is a product of volatility.
“I know a lot of people don’t like the range estimates. They think it’s too wide and it’s unusable, the model is not valid, etc. But I much prefer the wide range, which is an indication of wide volatility, then a point estimate that pretends to be accurate.” he said.
Bitcoin is currently trading at $24,600 at the time of writing this report after touching $25,250, data from the Binance platform reveals.