De Nederlandse analyst PlanB is consistently optimistic about Bitcoin. In 2019, he gained prominence with his Stock-to-Flow model, which has now been abandoned by most individuals. However, PlanB himself hasn’t given up on it yet and anticipates that the troubles surrounding FTX will eventually be seen as a minor obstacle on Bitcoin’s long-term journey.
Stock-to-Flow Model Reaches a New Low
As a result of the FTX turmoil, the Bitcoin price has plummeted to a new low during this bear market. This seems to only reinforce the bearish trend that was already evident. PlanB introduced the Stock-to-Flow model in 2019 as a way to value the scarcity of Bitcoin. By comparing Bitcoin to assets like gold and silver, the analyst believed it was possible to predict Bitcoin’s price movement.
For a while, the model indeed appeared to be successful in doing so, but the reality has since changed. Macroeconomic conditions threw a wrench in the works. As inflation began to rise at an alarming rate, central banks intervened with higher interest rates, significantly impacting the Bitcoin price. The collapse of FTX seems to be the final blow in Bitcoin’s period of adversity. Hopefully, the bottom has been reached by now.
Bitcoin at $72,000
Until the all-time high in November 2021, PlanB’s model enjoyed immense popularity. By the end of that year, he even predicted a price of $100,000 based on his models. Now we all know that this price wasn’t achieved, and the opposite is true. At the time of writing, Bitcoin is trading below the peak of the 2017 rally.
As of the time of writing, the Stock-to-Flow model suggests a Bitcoin price of $72,000. Apart from Bitcoin’s early years, the model has never been so far from the truth. However, PlanB refuses to abandon the model and expects Bitcoin to synchronize with the model again in the foreseeable future.
