Two prominent figures in the crypto community both with roots in the institutional investing world have this week predicted triple digit upcoming Bitcoin price levels.
Quant analyst ‘Plan B’ who is best known in the crypto world for his stock-to-flow bitcoin ratio has called for a possible scenario where Bitcoin skyrockets close to $300,000 this year. In the same week Galaxy digital CEO and founder said he believes Bitcoin will reach a $500,000 price valuation within 5 years time.
Who is Plan B and what is the stock-to-flow Bitcoin model?
Plan B is an alias used by a Dutch institutional investor with a quantitative finance background. In the crypto world he is best known for his stock-to-flow (S2F) model, which the scarcity of Bitcoin over time to determine its likely price value. Plan B works currently manages a team of investors who manage a multi-billion dollar balance sheet of assets.
Plan B’s stock-to-flow model was highly accurate in its monthly calls of the Bitcoin price, causing himself and the model he created to be followed closely by the crypto community. Over the last 3 months, prices have steered away from the model, however Plan B has argued that the model is not invalid and the Bitcoin price can fluctuate within an acceptable range of the model.
The pseudonymous analyst recently tweeted to his 1.7 million followers that the stock-to-flow (S2F) model is hinting at a big price rise for BTC, with a caption “Just a scenario”. The image in the tweet shows a hand drawn continuation of the current stock to flow chart with current prices, showing the ‘scenario’ where prices reach around $300,000 US Dollars this year. The drawn continuation of the current actual S2F model seems feasible when put in the context of the entire chart from current day back to 2010.
Mike Novogratz background and recent predictions
Mike Novogratz is the current CEO of Galaxy Investment Partners which focuses on cryptocurrency investments. He formerly worked on the board of directors of Fortress Investment Group LLC and also Chief Investment Officer of the Fortress macro fund. He also previously held multiple positions at Goldman Sachs including partner and president of Goldman’s Latin America.
Worth over $700 million, Novogratz has said his assets are made up of about 50% crypto. He has served as one of the crypto communities most vocal and faithful bulls throughout the recent years. He is commonly found on financial related television shows or Internet media outlets, pushing Bitcoin adoption and investment asking viewers to input at least 1, 3 or 5% of their wealth to Bitcoin. He has also long predicted that while the cryptocurrency industry grew in popularity amongst retail investors, institutional money was left on the sideline due to regulation, with new laws slowly creeping in allowing instructional money into the space, the crypto prices will benefit in the long term.
With an intensive financial background Novogratz founded Galaxy Digital, which focuses on investments into digital assets like Bitcoin and Ethereum. According to the institutions website, Galaxy Digital is a “technology-driven financial services and investment management firm that provides institutions and direct clients with a full suite of financial solutions spanning the digital assets ecosystem.” It also states “We are the bridge between the crypto and the institutional worlds.”
Mike Novogratz expects Bitcoin to reach $500,000
Novogratz gave several interviews this week where he discussed his view on the future price of Bitcoin. In a Bloomberg interview he stated “The biggest thing that’s happened in the last 10 years in lots of ways, maybe longer, is when Europe and the U.S. said: ‘Hey Russia, those reserves that you thought were yours, they’re not really your reserves.” He further clarified by saying “It means the dollar or treasuries as a risk-free asset isn’t so risk free. It’s not risk free if you’re Russian and maybe if you’re Chinese, it might not be risk free either.” He then said that Bitcoin is a lifeline to people in countries who have really poor stewardship of the economy.
The Galaxy Digital CEO continued to to state his Bitcoin future price prediction. “Five years out, if bitcoin is not at $500,000 then I’m wrong on the adoption cycle.” Novogratz then stated “We see an adoption cycle that accelerates. Bitcoin grew so much faster last year, crypto grew, than the internet did its best years in the 90s. I see this going viral everywhere,”