BTC Pricing Model Creator Says Bitcoin Bull Market “Has Started Second Leg”
Bitcoin (BTC), which hit a new high of $ 67,000 last week, opened the door for the opportunity to hit $ 100,000 by the end of the year.
According to PlanB, creator of the popular stock-to-flow (S2F) model, Bitcoin’s $ 60,000 decline has been called the “second leg” of a seemingly long-term bull market.
– PlanB (@ 100 trillion USD) October 26, 2021
In doing so, the analyst with the nickname, who quoted S2F, predicts that Bitcoin will continue to rise and reach $ 100,000 to $ 135,000 by the end of the year.
The price prediction model claims that Bitcoin’s value will continue to rise at least as much as $ 288,000 per token due to the “halving,” an event that occurs every four years that slows Bitcoin’s rate of issuance, to at least $ 288,000 per token in the supply cap.
It is noteworthy that Bitcoin has gone through three halving so far in 2012, 2016 and 2020.
Each event reduces the new supply rate of the cryptocurrency by 50%, resulting in a significant increase in the BTC price. For example, the first two halves saw the price of BTC rise more than 10,000% and 2,960% respectively.
The third halving saw the price jump from $ 8,787 to a high of $ 66,999, an increase of 667.50%. So far, S2F has been largely accurate in predicting Bitcoin’s price action, as shown in the chart below, giving the bulls greater hopes that Bitcoin’s rally will cross the $ 100,000 mark after the halving.
PlanB stated earlier this year that Bitcoin will hit $ 98,000 in November and $ 135,000 in December of this year. in the past decade.
80% errors after that
Despite the high price forecasts, Bitcoin will still see major corrections in the future. PlanB assumes that the next crash will wipe out at least 80% of the value of Bitcoin’s market capitalization based on the same S2F model.
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“Everyone is hoping that the superbike or ‘hyperbitcoinization’ will start now and that we won’t have a major crash after the next all-time high,” the analyst told Unchained.
“I hope we don’t see this breakdown, I think we will. I think we are ruled by greed now and fear later … and see another 80% less once we have a few hundred thousand dollars behind us. “
But not everyone thinks the next adjustment will be as dramatic as the previous ones. Dan Morehead, CEO of Pantera Capital, said in mid-October that the next Bitcoin halving would be less than 80%, citing a steady decline in sales sentiment after each halving cycle.
Bitcoin (BTC) hit a new record high of around $ 67,000 last week after rising 53% so far in October. But the new high spurred traders to profit-taking, which re-tested the $ 60,000 support.