In the realm of cryptocurrency analysis, diverse approaches often emerge, with some analysts gaining attention for their unique perspectives. PlanB, the creator of the Stock-to-Flow (S2F) model, is one such analyst, famous for his $100,000 Bitcoin (BTC) prediction. Recently, PlanB has been comparing BTC to the price of gold per ounce, suggesting that BTC is still undervalued when measured against gold.
When evaluating Bitcoin’s value, a fascinating discovery arises: BTC’s price appears closer to the S2F model value when measured in gold (XAU) instead of dollars. This alternative measurement adds a new dimension to Bitcoin’s valuation. According to PlanB, at the current rate, BTC is equivalent to 22 ounces of gold, indicating its ‘natural’ value, yet it remains below the S2F model value of 35 ounces, suggesting an undervaluation.
An important factor to consider is the upcoming 2024 Bitcoin halving event, which is expected to reshape the valuation dynamics of Bitcoin. Post-halving, PlanB posits that the S2F model value for BTC could indicate a staggering equivalent of 300 ounces of gold, highlighting the future appreciation potential of Bitcoin and reinforcing its status as a valuable asset beyond traditional fiat measurements.
PlanB’s perspective suggests that a jump in BTC’s value to such levels would underline Bitcoin’s potential for future appreciation, solidifying its position as a valuable asset that transcends traditional fiat benchmarks.
Examining Bitcoin’s value through the lens of gold measurements reveals potential undervaluation and offers insights into the cryptocurrency’s future trajectory. As the 2024 halving approaches, alignment with the S2F model becomes increasingly critical, pointing to a transformative phase for Bitcoin’s value in the evolving financial landscape.
At the time of writing, Bitcoin is trading at $44,000, with a 2% increase in the last 24 hours. This movement has also led to significant activity in altcoins, particularly the rise in Solana and a notable 50% increase in the cryptocurrency BAKE.