PlanB’s Bold Bitcoin Prediction: Cementing $35,000 as the Unbreakable Floor
PlanB, the creator of the Stock-to-Flow (S2F) model, has once again stirred the pot with a bold prediction regarding Bitcoin’s future price trajectory. In a recent series of tweets, PlanB has asserted that Bitcoin’s price will never dip below the $35,000 mark again.
This proclamation, backed by PlanB’s analysis of Bitcoin’s valuation based on its hashrate, has sparked both intrigue and skepticism within the crypto community. PlanB’s tweet highlighted the significance of Bitcoin’s valuation reaching the $35,000 threshold, suggesting a firm support level for the premier digital asset.
The crux of PlanB’s argument revolves around the concept of $/kWh-arbitrage fundamentals, emphasizing the correlation between Bitcoin’s valuation and the electricity-based costs incurred by miners. According to his insights, this linkage between mining costs and market value forms a sturdy foundation, indicating that Bitcoin will not regress below the $35,000 support, barring unforeseen black swan events or short-term volatility.
Expanding on his perspective, PlanB underscored the impending role of ETFs in potentially deepening the existing arbitrage between miners acquiring Bitcoin through electricity and users purchasing it via exchanges with cash. He postulated that miners, equipped with unique market knowledge, might leverage this opportunity to charge a premium when selling the cryptocurrency.
PlanB’s reputation as the architect behind the widely utilized S2F model lends weight to his forecasts. His model, renowned for its application in predicting asset market trends, particularly in the case of Bitcoin, has gained substantial traction in the realm of market analytics.
Notably, PlanB’s bullish stance on Bitcoin extends beyond the $35,000 assertion. He advocates for a more significant surge, aligning with the belief that a $100,000 valuation for Bitcoin is conservative. His recent discourse suggests a potential price spectrum for Bitcoin, ranging between $65,000 and a staggering $524,000 in the foreseeable future.
While PlanB’s predictions have garnered attention and even a degree of confidence from some quarters, it’s essential to approach such prognostications with a cautious lens. The volatile nature of cryptocurrency markets often defies traditional forecasting methodologies.
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