The anonymous analyst who developed the Stock-To-Flow (S2F) model made a prediction that shocked the cryptocurrency community in his latest revelation. According to the analyst, Bitcoin might reach an astounding $500,000 per coin during the next halving event.
Using the S2F model, which determines Bitcoin’s value based on scarcity, the analyst, who goes by the name “PlanB,” has established a reputation for making precise predictions. The modified version of his model still predicts a price of $54,000 for the current cycle based on PlanB’s most recent data and the typical S2F ratio and BTC price during prior halving cycles.
The predictions made by the model has, however, been contradicted by the present market circumstances. Bitcoin was selling about $31,000 at the time of the statement, which showed a large deviation from the anticipated value. Analysts and traders have been debating the S2F model’s accuracy and dependability in the present market climate as a result of this development.
Halving To Happen In The Next Four Years, Experts Wary
The cryptocurrency world eagerly anticipates the next Bitcoin halving, which is expected to take place in about four years. Although the S2F model has proven effective, some detractors contend that the current market dynamics might differ from earlier trends.
Others think that the infusion of institutional investors and the general public’s expanding acceptance of cryptocurrencies may have caused Bitcoin’s price to reach these historically high levels. The report had it that investors and analysts carefully watch Bitcoin’s performance and the precision of PlanB’s prediction as the BTC prepares to make a significant price mark.
The latest prediction by PlanB is coming when BTC is undergoing a major price increase. PlanB also added that “testing is necessary for this resistance level.” As of press time, the price of BTC is at $29,741.98, indicating an increase of more than 1.19% in the last 24 hours.
The BTC’s latest resurgence did not only affect its value but stretched across different alternative digital assets and altcoins. While BTC continues to gather more momentum, traders and investors are currently searching for means to diversify their investment portfolio hence, their sudden interest in alternative coins.
Meanwhile, today’s Bitcoin market performance performed slightly well, with a slight increase of 0.16%, representing $581,092,444,529 in its market capitalization. The amount in circulation has remained 19,432,993 BTC, while trading for $14,029,765,905 in the lastest trading volume, representing a 14.92% increase in the last 24 hours.
It was also gathered that the issuance rate of BTC has recently reduced, thereby signalling an impending increase in the price hence, validating PlanB’s recent predictions. Also recall, that PlanB is responsible for predicting the price of BTC at $4,400 during the past halving sessions, which lasted from 2016 to 2020.