Famous analyst PlanB described a scenario that could push Bitcoin (BTC) to 5 million dollars.
In his social media post on March 18th, PlanB included the halving cycle of Bitcoin. The analyst pointed out that the halving cycle, which takes place every 4 years, linearly pushes the price up. He predicted that the price could reach 5 million dollars during the 2028-2032 halving.
In the Bitcoin Stock-to-Flow (S2F) model specially prepared by the analyst, an average target price of 50,000 dollars was set for the 2020-2024 cycle. This $50,000 target was interpreted as the price potentially reaching $50,000 before the halving.
Additionally, a notable target of 500,000 dollars was set for the 2024-2028 halving cycle.
Stock-to-Flow (S2F) is an indicator that compares an asset’s current supply (stock) with its production rate (flow). In Bitcoin, the S2F is calculated by dividing all Bitcoins in circulation (stock) by the annual amount of newly mined Bitcoins (flow). The higher the S2F ratio, the rarer and more valuable Bitcoin is considered. This is a valuation method focused on Bitcoin’s limited supply and its resistance to inflation.
The next Bitcoin halving will take place in April, reducing the reward given to miners per block from 6.25 BTC to 3.125 BTC.
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