PlanB, a popular name in the Bitcoin community thanks to its Stock-to-Flow (S2F) model, shared the latest speech about X, generating a wave of excitement and speculation. This speech particularly highlights BTC’s potential journey through successive halving cycles.
PlanB’s analysis, deeply rooted in the S2F model, presents a narrative for the future of Bitcoin. This model examines the correlation between an asset’s existing reserves (stock) and annual production (flow) and lays the foundation for Plan B’s bold predictions.
Navigating Predictions: A Community Burden
According to the model, the next halving cycle, which spans 2020-2024, is expected to solidify the price of Bitcoin at around $50,000. But the real spectacle unfolds in the following cycles, with projections Setting the stage for Bitcoin to rise to $500,000 in the 2024-2028 cycle, eventually reaching a monumental $5 million in the 2028-2032 cycle.
Stock-to-Flow Halving Cycle 2020-2024: ~$50K
Stock-to-flow reduction cycle 2024-2028 in half: ~$500K
Stock-to-Flow Halving Cycle 2028-2032: ~$5 million
Yes, S2F = exponential growth, and will continue IMO. pic.twitter.com/rH1KmIyKSl– Plan B (@ 100 trillion dollars) March 18, 2024
The predictions made by Plan B sparked interest and debate among the crypto community. Many are curious to see if Bitcoin will experience the substantial growth predicted.
One
Plan B acknowledged this caution, highlighting that its forecasts are based on three previous halving events and the significant pre-halving period, suggesting that while the Stock-to-Flow model can guide the overall trend, its accuracy comes with a considerable margin of error. .
For example, although the 2020-2024 period was projected to see an average of $55,000, the actual value was around $33,000.
Very true. Just 3 halvings (2012, 2016 and 2020) plus the crucial period before the halving (where BTC S2F grew from less than 1 to ~4). And S2F is just for general guidance, of course, and with a wide margin of error (eg: the 2020-2024 forecast was 55k, but in reality ~33k).
– Plan B (@ 100 trillion dollars) March 18, 2024
Additionally, another user in the conversation, known as Phoenix of Crypto, commented that although the Plan B projection may seem “overly optimistic”, the true result remains to be seen, emphasizing the need for patience.
This user highlighted the uncertainty surrounding The future of Bitcoinespecially considering the potential impacts of ETFs and their widespread adoption, signaling an open-minded but vigilant approach to market developments.
Latest Bitcoin Price Action
Bitcoin is experiencing a notable decline, having declined by 7.5% in the last week. This downward trajectory has continued over the last 24 hours, with the cryptocurrency falling another 1.5%. Despite these setbacks, Bitcoin’s trading price remains at $67,167 at the time of writing.
Skew, a renowned trader, provided technical analysis indicating a critical support range for Bitcoin investors between $60,000 and $67,000.
This range is seen as a possible pivotal point for market direction, while also noting substantial selling activity on leading platforms like Coinbase and Binance.
$BTC Spot market data thread, in partnership @_WOO_X $BTC Binance Spot
Weekend spot buyer hereSpot supply (US$72 thousand – US$74 thousand)
Spot demand ($60 thousand)Interestingly, the last rejection that was sold also resulted in a pile of limit bids being priced lower.
~ Keep an eye on these offers… pic.twitter.com/3PKHyddNlv– Δ Skew (@52kskew) March 17, 2024
Featured image from Unsplash, chart from TradingView
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