According to former institutional investor, turned anonymous. Crypto trader plan b plan b is the creator of the highly praised stock to flow model, which has been one of the best predictors of price since its inception and its also one of my personal favorite charts. And if what plan b says is correct, then the bear market is officially over and were going to see an explosion in the crypto prices starting this month. So in this video well be looking at what exactly is the stock to flow model and well get an explanation from plan b himself? Well, then break down his big price prediction and how exactly were going to get there so well do price targets for this month. Next month and december, and to finish up a bit of a bonus, a table that shows which months have historically been good and bad for crypto, so some great seasonality, insights, as always, if you do enjoy anything in the video, then drop a like always appreciated. Okay, so yes, stock to flow is based on the price of bitcoin. However, for all you all coin fans out there remember this: if bitcoin hits these prices, then many of the altcoins are going even higher and the reason the best crypto analysis is done on bitcoin is because bitcoin still dictates the market. If bitcoin rallies, then the whole market rallies if bitcoin crashes, the whole market, crashes, etc, etc. Okay, very excited for this one, how bitcoin gets to a hundred thousand dollars by the end of the year? Ready lets do this, so this is the stock to flow chart and just to get any beginners up to scratch.

Here are the basics, so this is bitcoins price since inception and its a logarithmic chart. So this means that it goes up in multiples of 10 and you can see from here to here. This is a 10x move, so these are absolutely huge moves. You can see in the different cycles, so stock to flow stock is how much bitcoin has actually been mined and flow. How much bitcoin is being created? This line going through the middle is the average and a big part of supply. Is these halving events, and this is how many days since the last halving event so when it goes to deep blue? This is a halving event, so we had a halving event here here and here, but why not listen to plan b himself as he explains how he created the stock to flow model? Now i do have timestamps below, but this one minute clip is definitely recommended and, as youll see hes now an anonymous crypto trader. So because my background is institutional investor and and as an institutional investor, you always need a fundamental model and, of course, for stocks we have it discounted cash flow models, the same for fixed income instruments or derivatives, its all based on cash flows. As soon as you go to commodities, for example, gold has the same problem as bitcoin theres: no cash flow and theres, not a yeah. How do you value such a such an asset and for bitcoin there wasnt really much out there a lot of technical analysis.

Of course, which im very familiar with, but but not fundamental valuation models, so i try to make a valuation model just come up with one, a very simple one and based on ratios metrics that i knew from the commodities investing world, so the amount thats out there Above ground, from for gold divided by the supply of gold, which is about 60., i got the stock to flow um ratio over time from bitcoin and plotted it against the market, value of bitcoin or the price and well, if, if you plot stock to flow ratio And and market value on a log log scale, you see a straight line and thats amazing. So so i formalized that with a regression analysis plotted the line through the data and – and that was the model basically so that was the infamous stock to flow model. Time now for the big price prediction of how bitcoin is going to double and many of the altcoins are going to explode over the next three months now. Whats amazing is that this price prediction started all the way back in june and its been crazy, accurate. So far check this out so first up here is the price of bitcoin, and this was the big crash that happened in may and obviously we had a much deeper crash, huge rallies. But what i wanted to point it out is that plan bs, big prediction came in about here, so obviously he had no idea what was going to happen from that point.

It was pretty much in the dark and he made some big price predictions back on twitter. So theres, a few things to point out here: firstly, is that this dates back to june, so keep that in mind and bitcoin was below 34 000 triggered by elon musks energy fudd in chinas minor crackdown, and he put out some big price predictions, and this was His worst case scenario for 2021, and it was based on price and on chain analysis. So a common misconception is that these price predictions are stock to flow because they arent stock to flow. The average is actually already predicting a hundred thousand, but this is the average. So prices have to go above and below to give the average. So these predictions were based on price and on chain analysis, and he said in august its going to be 47 000 septembers, going to drop to 43 000 october, a big jump to 63 000. Then a huge explosion to almost a hundred thousand november and then smashing through it to 135 000 by december, and this is how its played out so far so august. He said bitcoins going to finish 47 000, and this was two months before and it finished 47. 015, so that was crazy, close then in the dark he said september its going further down to 43 000 and it finished forty three thousand seven hundred and forty dollars. So this is three months out yet hes still within one thousand dollars, which is crazy and then the most exciting part is that october were going to jump to 63 000 and to be fair, its already halfway there and then obviously even bigger months november and december, And then another great insight that he recently dropped is this.

He thinks that the second leg of this bull market will have at least six more months to go. So this would take us up to march next year. So make a mental note of that time frame and also hot off the press. Just in the last couple of days, plan b has just got to a million followers on twitter. So, congratulations for that and i, for one will be rooting him on if he continues to hit these numbers. So as you can see, plan b has been spot on so far and i dont know anyone else. Whos been able to predict the price of bitcoin to the nearest 1 000 3 months in advance. Now i also have to say this is not guaranteed to happen as no one knows the future, so dont go selling your house and yellowing on dogecoin just yet. By now, you should already be invested in the crypto market, so its just a case of enjoying the ride and its your patience paying off. I think if an etf gets approved, then this will be the ticket to the moon. However, having said that, if regulation hits before the end of the year, then no price chart is going to be able to stop another big drop, but i certainly think plan b will attain legendary status if these numbers stack up. Okay to finish up a bit of a bonus chart, ive got a great table which shows which months have been good and bad for crypto.

Historically, so a great seasonality chart check this out. So this is a very insightful table showing the seasonality for bitcoin and pretty much the crypto market. So it goes back to 2013. Weve got 14 15 all the way to 2021, and it shows which months have been good and bad in the crypto market and if theres lots of red, then this would be a bad month. Historically, if theres lots of green, then this would be a great month. Historically, so what does it show? Well, apart from the last couple of years january in general, is a pretty bad month for the crypto market on the flip side february is a pretty strong month. Historically march is a bit of a terrible month. If its got three red, then aprils pretty average may not so great june. Not so great july is pretty. Average august is a bit of a bad month in the crypto market september. As we all know, weve just gone through it, and this historically is always been a bit of a bad month now october. This is the one were going through right now and its already doing very well so id say october looks like a good month. As does november, a lot of green for november and december is quite good as well. So this says to me: weve got a very good chance that the next three months are going to be really good. Stock to flow has been one of the best predictors of the bitcoin price and the crypto market since inception, and it was created by a former institutional investor.

Turned anonymous trader plan b plan b predicts that bitcoin will double from todays price by the end of the year, which will also send many of the altcoins to the moon, and he also believes we have about six months left of this current market cycle. I, for one will be taking some profits close to the end of the year, but i will probably do a full video on that closer to the time, and we saw historically october november and december are strong months for the crypto market, which does add additional backing To plan bs prediction, so there you are guys hope you enjoyed have to say i am pretty excited about this next few months. We certainly need a bitcoin etf to go, live and any crypto regulation if you could just hold off until 2022. That would be great. Mr gensler tell me: what do you think 100k for bitcoin by the end of the year? Yes or no? Let me know below for now just to say if you did enjoy anything in the video, then drop a like and a big. Thank you to everyone who does if you havent yet subscribed to the channel, then click below and join us got some great videos coming up that you dont want to miss. Okay, cheers guys thanks for watching and ill see you in the next video bye for now.