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In his recent assessment, well-known cryptocurrency market analyst PlanB suggested that Bitcoin’s current price levels remain considerably low within its four-year cycle. Despite Bitcoin’s previous peak near all-time highs, it is presently trapped within a lower range. PlanB insists that Bitcoin 
$105,740 is significantly undervalued at its current price.
Stock-to-Flow Model Assessment
The stock-to-flow model, highlighted by the analyst, posits that the scarcity of a commodity directly impacts its price. According to PlanB, Bitcoin’s average value should be $500,000 in the present cycle, with the current price trailing significantly behind this benchmark.
Referencing the scarcity factor that underlies the model, PlanB believes that Bitcoin is only in the first year of its four-year cycle and anticipates substantial value increases in the coming three years.
“Bitcoin price at $104,000 is far behind the stock-to-flow value of $500,000. My expectation is for the cycle’s average to reach this level. We are still away from that and only in the first year, with three more years ahead. Therefore, I believe Bitcoin is undervalued.” – PlanB
Is the Bull Market in Its Early Stages?
PlanB noted a temporary spike in Bitcoin prices with the recent introduction of Bitcoin exchange-traded funds (ETFs), followed by a return to initial stages of past bull markets. This suggests, according to the analyst, that we are in the very early phase of an upward cycle.
Bitcoin’s current price hovers around $104,300. PlanB identifies this as the onset of a new “bull market” phase, with historical parallels indicating such movements as the beginnings of past upward trends.
“After spot Bitcoin ETF approvals in January 2024, there was a temporary rise in the bull market region. Now prices have returned to where all past bull markets began. To me, this is a highly positive signal.” – PlanB
Price Predictions and Market Expectations
The analyst speculates that Bitcoin’s price in the ongoing cycle could aim for an average of between $250,000 and $1 million. PlanB shares the idea that Bitcoin might have a potential increase of around 860% during the current cycle.
“Bitcoin is currently in a bull market, targeting an average price of $250,000 to $1 million in this cycle.” – PlanB
PlanB’s statements might be considered optimistic predictions by some investors, while no guarantee is offered towards an exact price target. It is recommended that investors reinforce these evaluations with their analyses.
The stock-to-flow model, commonly used in cryptocurrency analysis, is both favored for its historical alignment and criticized for its limitations. Price movements are shaped not only by scarcity but a multitude of macroeconomic and sectoral factors too.
Forecasts concerning Bitcoin’s future price movements rely on a broad perspective, and whether the analyst’s proposed targets will be realized remains to be seen over time. Investors are encouraged to closely monitor market conditions and integrate diverse analyses for more informed decision-making in uncertain environments.
