Will Bitcoin Escape Another -80% Bitcoin Bear Market?
Analyst PlanB says Bitcoin will see a severe bear market despite conflicting claims by other experts.
In a new interview on FamilyOffice’s YouTube channel, PlanB highlighted some signals that Bitcoin is finally entering bear land.
“First of all, I’m one of the few people who really believe there will be another bear market, a crash like the one we’ve seen a few times before. Right now, a lot of people are saying that we are done with the 4 year cycle and that we will no longer have this kind of volatility and deep bear market.
I think we will go through this bear market all over again. You can see it in option prices with 100% price movement. A few months before China blocked Bitcoin mining, the price fell more than 50%. So the bear market is almost there. So that tells me that an 80% adjustment is likely.
PlanB says the next crash is likely to occur after Bitcoin hits stock-to-flow (S2F) and stock-to-flow cross-asset (S2FX) price targets.
The S2F model predicts the price of an asset by dividing the available supply by the new supply that comes onto the market each year. Meanwhile, the S2FX model looks at Bitcoin’s phase transition from proof of concept to a financial asset in order to arrive at a valuation for BTC.
“I think the price will go up a bit, at least it will hit the S2F model values of $ 100,000 and $ 288,000. But then it goes down again by 80% … I think that’s partly constant, and partly it’s also greed and fear among investors. Nature will not change. ”
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