$7.8K Bitcoin on Track, Says Price Model as Difficulty Surges 6.8%

Bitcoin (BTC) did not “crash” this weekend and is in fact performing exactly as expected, says the creator of the renowned stock-to-flow price indicator.

In a tweet on March 8, the analyst PlanB said that even though BTC/USD had dropped below $8,000, the downward pressure was actually a non-event.

PlanB: BTC price “still spot on”

Stock-to-flow is a measure of where Bitcoin should go based on its existing supply — the stock — versus the “new” Bitcoins that enter circulation, or the flow. The resulting ratio determines the expectations, which call for BTC/USD to hit $100,000 at some point in 2021.

Prior to May’s block reward halving, which should catalyze price growth, PlanB’s model calls for substantially lower average readings of below $10,000.

At present, the average of the 10-day and one-year stock-to-flow values is around $7,600 — less than $200 below the spot price at press time.