Even though many experts predicted another price jump by the end of the year, it’s nowhere to be seen, at least for now. As a matter of fact, Bitcoin and crypto prices have been in an almost steady decline. Some price pumps last week renewed optimism about a sudden bull run, but those hopes quickly died out when Bitcoin’s price tumbled several percent on Tuesday night.
Bitcoin seems far off the $100,000 price predictions for December 2021, but that doesn’t mean it’s fallen off the rails. According to the price model created by Dutch analyst PlanB, the bulls rally remains intact and the latest price drops are just part of the ride.
All OK in the $50K-$200K Range
The stock-to-flow plan predicts the long-term market movement dictated by Bitcoin’s scarcity. It is closely related to Bitcoin’s halving process that occurs every 4 years. At that point, Bitcoin’s stock is divided with its production (flow), creating a S2F model that forecasts the price in the future. There were massive price jumps during the three halvings so far in 2013, 2017, and 2021. While the last halving took place in May, it took Bitcoin until November to hit a record price of $69,000. It still managed to follow the previous halving pattern.
The stock-to-flow model created by Dutch independent analyst PlanB predicts the bulls rally and is still right on tract. Even with the latest price drops, PlanB isn’t concerned. While his prediction is way off the $100,000 target, PlanB believes that staying in the $51,000-$200,000 prediction range is key for Bitcoin’s price jumps in the future.
The model shows that the original predictions are intact. PlanB isn’t the only analyst that has predicted a $100K price for Bitcoin by the end of 2021 and beyond. It has failed to reach that target although it seemed to be right on track initially. This year has been a year of highs and lows for Bitcoin. Even though it’s failing to break the $50,000 barrier at the moment, it’s still breaking records in terms of price.
What Happens Next?
Analysts including PlanB are very optimistic about the prices going forward. As PlanB said, the key is to stay in the $51K range. Such consolidation over the next few years will put Bitcoin in prime position to go ahead and reach new record prices on its way to $100,000.
While the number still seems too high, it’s not fantasy at all. We’ve seen the crypto market blossom in the past year. No one could have believed that Bitcoin would break $50,000 a year ago, but look at where the market is now. The 2017 crash left cryptocurrencies almost in the dust, yet they’ve risen like a phoenix from the ashes.
Thanks to Bitcoin’s escapades, numerous new cryptos have also hit record prices. Many of these have become a great investment of their own, and new cryptos with smart features are breaking new ground. The crypto market has never been more exciting, and it’s all thanks to Bitcoin, so there’s no reason to believe it’ll fail anytime soon.