Quantitative analyst PlanB says a 10x price increase for Bitcoin (BTC) is in the offing as many of the key indicators have turned bullish.
In a new video update, the closely watched on-chain analyst tells His 89,400 YouTube subscribers indicate that he does not expect Bitcoin to deliver lower returns or profits than the previous cycle, as BTC adoption is still in its early stages.
“[Bitcoin’s growth used to be] 100x in the first few bull markets, but lately that has slowed down a bit to 10x, just under 10x.
I don’t expect diminishing returns because we have 2 or 3% adoption, and if we follow the logistic S-curve and Metcalfe’s law, we can’t have diminishing returns below 50% adoption, so we will have exponential growth . a few more years. I expect a nice 10x that puts it somewhere close [$100,000 to $1 million range].”
PlanB also looks at its model which aims to determine the stages of Bitcoin market cycles by analyzing the cost basis of the majority of BTC in circulation. According to the analyst, Bitcoin is now exceeding the average cost basis of coins, which is a “signature” bull run signal.
“So right now we have put the bear market of 2022 behind us, the price of Bitcoin exceeded all cost prices, so a lot of people are now making profits and Bitcoin is above cost prices and cost prices are rising mainly the realized price, which is rising again, which is a is a characteristic signal of a bull market beginning.
Where will that take us? Probably in this $100,000 to $1 million range, if history is any guide.”
Looking at the analyst chart, Bitcoin’s price appears to be floating above the realized cost, the two-year realized cost, and the five-month realized cost. The realized price is the average price of all Bitcoins in circulation, calculated based on the price at which they last moved.
Bitcoin is trading at $44,167 at the time of writing.
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Generated image: Midjourney
