If you’ve already read our Bitcoin price predictions, you are aware that we’re calling for Bitcoin to reach a price between $379,825 and $1,329,389 later this year. You may also be aware that Tim Draper is predicting the price of Bitcoin to reach $250,000 next year.
Tim Draper isn’t the only forecaster calling for the price of Bitcoin to reach a quarter of a million dollars. The Bitcoin Stock-to-Flow model is predicting the same price, by the end of this year.
PlanB, the creator of the model, a few moments ago tweeted that the model is predicting a 20% monthly increase in value of Bitcoin for the remainder of this year. That would put the price of Bitcoin at $250,000 each by December 31, 2021.
We would like to point out what should be obvious: the model predicts a steady 20% monthly increase in the “value” of Bitcoin. Theoretical value and market price can often be quite different. During periods of fear and negative press, market conditions can can cause the price to be substantially lower than value, and during periods of extreme bullishness and greed (as illustrated by the crypto fear and greed index), market conditions can cause the price to be bid to levels that are significantly higher than the value indicated by the model.