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This Will Be Bitcoin's Price During the Next Halving, According to PlanB's S2F Modelhttps://t.co/oy4HXAFIR1
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.$btc $eth $sol $ada $ltc $avax $dot $matic $algo #xrp #xmr #bitcoin #ethereum #solana #monero #cardano #dogehttps://t.co/oy4HXAFIR1
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Bitcoin (BTC) racing towards $60,000 despite turbulence
Mon 24 Apr 2023 ▪
3
min of reading ▪ by
Getting informed
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The value of Bitcoin (BTC) has fallen after reaching $30,000 recently. However, these trends are not stopping predictions that its price will explode. Some believe the asset could be worth at least twice its current price within a year. Here’s the reason for their predictions.
BTC price to double, according to the S2F model
After reaching the $30,000 point, the valuation of bitcoin (BTC) has dropped significantly in recent days. The unit of the leading crypto is currently worth about $27,600.
This is nothing to be alarmed about for PlanB, a pseudonymous crypto analyst. He believes that within a year, the Bitcoin should be worth at least $60,000. This figure is obviously a 2-fold increase from the recent high reached by BTC.
His projections are based on the Stock-to-Flow (S2F) model. This is an economic theory that PlanB applies to Bitcoin. According to its precepts, there would be a relationship between the quantities of BTC currently available on the market, and those created each year.
The correlation between these two quantities would be the reason for the scarcity of Bitcoin. A situation that, itself, would influence the increase in value of the queen of cryptos. At first glance, his theory could be defended, given that the scarcer an asset is, the more valuable it is considered. As a result, its prices explode.
From that point of view, PlanB’s prediction of a doubling of Bitcoin’s price could be sustainable. Unless you consider that his analysis is not really supported by the crypto analyst community.
Despite its relevance, the S2F model is indeed subject to several criticisms. Some have felt that this theory lacks precision in particular. However, it is true that during the first years of its existence, the method has shown its predictive efficiency.
But recently it seems to have run out of steam, as recent projections based on this theory have failed miserably. For example, PlanB predicted that Bitcoin would exceed a six-figure valuation by the end of 2022. The crypto community is still waiting for this prophecy to come true!
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.