PlanB sees no danger yet
The crypto market is very volatile, it goes up and down a lot more. However, PlanB’s famous stock-to-flow model is still valid.
Bitcoin still on track
Although the market has completely collapsed, the famous crypto analyst PlanB still thinks that after having halved, Bitcoin is on track to reach $ 100,000.
PlanB became known for the stock-to-flow (S2F) model, with which it made it visible from a price of up to 100,000 USD. Now, due to the market situation, he has released an update saying that everything is fine.
“People think that the S2F model broke down yesterday. Of course not. Bitcoin fluctuated well around the value of the model and remained well in the bands of the model. The extreme volatility within the model bands shakes the “weak hands”. No extreme returns without extreme risk (volatility). “
The wide range of model bands explains the extreme volatility of Bitcoin. Although sales have been quite huge in recent days, the BTC does not deviate from the price range of the S2F model.
In an off-channel podcast recently moderated by Anthony Pompliano of Morgan Creek Digital, PlanB explains the basic idea of the stock-to-flow model.
“Stock-to-flow is an attempt to quantify the invention of digital scarcity that Satoshi made … Why does stock-to-flow work? Because it directly measures rarity, like gold … The rarer a thing, the more precious it should be. “
The halving is approaching and despite wild price swings, PlanB does not deviate from its model, which shows that Bitcoin will reach $ 100,000.