The famous quantitative analyst PlanB stated that Bitcoin (BTC) is currently preparing for a series of major bull runs based on past precedents.
In a recent update, the anonymous analyst informed his 182,000 YouTube subscribers that his stock-to-flow (S2F) model indicates Bitcoin could exceed $250,000 in the coming years.
His stock-to-flow (S2F) model, initially used for traditional commodities before he adapted it for Bitcoin, predicts the performance of an asset based on the idea that prices rise as the asset becomes scarcer.
In the past, PlanB's S2F model has signaled the start of strong bull runs right after the halving, when the miners' rewards are cut in half.
'Bitcoin closed in October at $70,000 and right now, a few days after the election, it has reached $76,000, a new ATH. Essentially, we have broken the month-long trading range where Bitcoin fluctuated between $60,000 and $70,000... If history repeats itself, we will see a strong price increase from here... In summary, the stock-to-flow model suggests that the average price of Bitcoin in the next four years will range from $250,000 to $1 million.'
Source: PlanB
The analyst also noted that there are strong bullish catalysts coming from the United States, including Donald Trump becoming President.
U.S. Senator Cynthia Lummis (R-Wyo.) is hoping Trump will support the Bitcoin Act, calling for the creation of a national Bitcoin reserve fund by purchasing 1 million BTC over 5 years.
PlanB also stated that the 'program to buy $42 billion worth of Bitcoin in the next 3 years' by MicroStrategy's founder and CEO, Michael Saylor, could be a major catalyst for this leading cryptocurrency.
Ultimately, he predicts that Bitcoin ETF funds will continue to grow.
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