PlanB, the creator of the popular Bitcoin Stock-to-Flow (S2F) model, calls the Bitcoin price adjustment from $60,000 as the “second leg” of a long-term bull market and that Bitcoin (BTC) hit a new record high. $67,000 last week So it’s likely to hit $100,000 by the end of the year.
Analysts refer to the S2F model, where Bitcoin is expected to skyrocket even further, reaching $100,000 to $135,000 by the end of the year.
The price prediction model confirms that the value of Bitcoin will continue to grow to at least $288,000 per token due to “halving,” a four-year event that halves the BTC issuance rate relative to it. with the amount of 21 million available
In particular, Bitcoin has undergone three halvings: in 2012, 2016 and 2020, each of which reduced the digital currency’s new supply rate by 50%, which was followed by a marked increase in the price of BTC. Halving the first two makes the price. BTC is up more than 10,000% and 2,960% respectively.
The third halving saw the price jump from $8,787 to $66,999, an increase of 667.50%. So far, S2F has been extremely accurate in forecasting the direction of Bitcoin’s price, giving the bull market hopes for a price increase. Bitcoin After Halving Will Hit $100,000
PlanB noted earlier this year that Bitcoin would hit $98,000 in November and $135,000 in December. It added that the only thing stopping cryptocurrencies from reaching six figure values is “a black swan event” that the market hasn’t faced in decades.
plummeted 80% later
But despite the high price forecast But it could still see a big correction for Bitcoin going forward, with PlanB thinking the next plunge could bring at least an 80% drop in Bitcoin’s market capitalization based on the same S2F system.
“Everyone is hoping the supercycle or ‘hyperbitcoinization’ begins now. We won’t have to face a huge price drop after the next ATH,” the analyst added to the Unchained podcast.
“As much as I hope it will be true. I mean, we won’t see the price drop anymore. But I think it will happen. [… ] I think we will be overwhelmed by greed now and fear later and will see another 80% drop after we go down from $200,000.”
But not everyone thinks the next correction will be as dramatic as the previous one, with Pantera Capital CEO Dan Morehead saying in mid-October that the next Bitcoin price will drop less than 80%, citing belief. Consistently declining sales after each halving round
Last week, Bitcoin hit a new record high of around $67,000 after a 53% gain in October so far. But the new highs brought profitability among traders, which resulted in the price re-testing the $60,000 support.
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