This will surely pique your interest! A remarkable prediction has emerged from the creators of the widely used Stock 2 Flow (S2F) model. Plan B, known for its accurate market judgment, confidently declared that Bitcoin's value is on the brink of a significant jump and stressed that Bitcoin will never fall below $60,000 again.
Bitcoin’s recent surge to an all-time high of $73,760 has caught the attention of both seasoned investors and newcomers to the crypto space. With the halving coming soon, Plan B believes this will push Bitcoin prices to new highs. Based on on-chain data and the RSI indicator, it looks like we are in a solid position with $60,000 acting as a strong support level.
Here's what he had to say:
PlanB’s unwavering Bitcoin support
In a recent announcement on X, PlanB backs up his prediction with a detailed analysis linking Bitcoin's value to its hashrate. He provides clear charts of the consistent upward trajectory of major digital assets. This link between these factors is a key pillar of his optimistic outlook.
Based on the stock-to-flow (S2F) model, PlanB suggests that the price of Bitcoin could rise to unprecedented levels, surpassing $200,000 and reaching up to $500,000. .
The stock-to-flow model, which compares Bitcoin's current supply with the rate at which new coins are coming into circulation, has proven to be a reliable indicator of Bitcoin's price movements, especially around halvings. These events occur approximately every four years and slow down the rate at which new Bitcoins are mined, effectively reducing supply and causing historically large price increases.
His analysis highlights the importance of Bitcoin's relationship with the S2F model, especially heading into the halving. A transition from a “blue” to a “red” point in the model signifies a transition to the bull market stage, indicating the potential for significant price increases.
Also read: Here’s how Ripple’s stablecoin launch will affect XRP price
short term twist
PlanB recognizes the potential for high volatility and a 20-30% decline in the short term, but remains optimistic about Bitcoin's long-term trajectory. He suggests that Bitcoin could reach $100,000 by the end of this year and could rise further in the coming years. But analysts have stressed the importance of patience and a long-term view for investors, warning that the peak may not occur until 2025.
Separately, investors have more reasons than ever to focus on Bitcoin as an asset class. Already, with the recent approval of 11 spot Bitcoin ETFs in the US, further cash inflows are expected in the coming years.
Furthermore, Bitcoin's fourth halving event will take place within 20 days, which will reduce the annual inflation rate to less than 1%. Meanwhile, the U.S. Federal Reserve has already signaled several interest rate cuts this year as inflation eases without large-scale job losses.
