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Bitcoin (BTC) has surged to a new all-time high of $123,091, signaling strong bullish momentum in the cryptocurrency market.
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PlanB, the creator of the Stock-to-Flow (S2F) model, asserts that Bitcoin remains significantly undervalued, potentially by a factor of ten compared to traditional assets like gold.
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According to COINOTAG, PlanB emphasized Bitcoin’s capped supply of 21 million coins, highlighting its superior scarcity relative to gold, which underpins his valuation model.
Bitcoin hits $123K ATH amid bullish trends; PlanB’s S2F model suggests BTC is 10x undervalued compared to gold, with analysts forecasting $200K by 2025.
Bitcoin’s Scarcity and Stock-to-Flow Model Underscore Its Bullish Outlook
Bitcoin’s recent price surge to an all-time high of $123,091 has reignited discussions around its intrinsic value and scarcity. PlanB, a prominent crypto analyst and creator of the Stock-to-Flow (S2F) model, argues that Bitcoin’s scarcity surpasses that of gold, traditionally considered the ultimate store of value. The S2F ratio, which measures the stock (existing supply) against the flow (annual production), stands at approximately 120 for Bitcoin, double that of gold’s 60. This elevated ratio indicates Bitcoin’s increasing rarity, a critical factor driving its valuation.
PlanB’s valuation approach hinges on Bitcoin’s fixed supply cap of 21 million coins, contrasting with gold’s estimated 197,000 metric tons in existence. Despite Bitcoin’s market capitalization hovering around $2 trillion, gold’s market cap is roughly $20 trillion, suggesting Bitcoin is undervalued by a factor of ten. This disparity implies a theoretical Bitcoin price exceeding $1.18 million per coin if the S2F model holds true. Currently, Bitcoin trades near $118,507, reflecting a modest 0.52% increase over 24 hours, supported by robust trading volumes exceeding $65 billion, which signals sustained investor interest and confidence.
Institutional Demand and Market Sentiment Fuel Bitcoin’s Growth Prospects
Market analysts remain optimistic about Bitcoin’s trajectory, with Bitwise’s Chief Investment Officer, Matt Hougan, describing Bitcoin as being in a “discovery phase.” Hougan forecasts that Bitcoin could reach $200,000 by the end of 2025, driven primarily by escalating institutional adoption and integration into traditional financial systems. This perspective aligns with increasing participation from hedge funds, asset managers, and corporate treasuries, which are diversifying portfolios with digital assets.
Conversely, Robert Kiyosaki, author of the bestselling book “Rich Dad Poor Dad,” offers a nuanced view. While he anticipates potential downturns in Bitcoin and precious metals markets, Kiyosaki plans to accumulate more Bitcoin during such dips. His stance underscores a long-term bullish sentiment despite short-term volatility, reflecting a broader trend among seasoned investors who view market corrections as buying opportunities.
Technical Indicators Support Bitcoin’s Resilience Amid Market Fluctuations
Technical analysis further bolsters Bitcoin’s positive outlook. Key support levels have held firm, preventing significant price retracements and maintaining upward momentum. The surge in trading volume by over 36% within 24 hours to $65.88 billion indicates heightened market activity and liquidity, essential for sustaining price advances. Additionally, Bitcoin’s ability to remain above critical moving averages suggests strong investor confidence and potential for further gains.
These technical factors, combined with fundamental drivers such as scarcity and institutional interest, create a compelling case for Bitcoin’s continued growth. Investors are encouraged to monitor these indicators closely and consider the evolving macroeconomic environment, which may impact digital asset valuations.
Conclusion
Bitcoin’s recent all-time high and PlanB’s Stock-to-Flow valuation model highlight the cryptocurrency’s unique scarcity and potential for substantial appreciation. While forecasts like Matt Hougan’s $200,000 target by 2025 reflect growing institutional confidence, cautious voices like Robert Kiyosaki remind investors of the inherent volatility in crypto markets. Overall, Bitcoin’s robust technical support and increasing adoption underpin a bullish outlook, making it a critical asset to watch in the evolving financial landscape.
