S2F creator says that Bitcoin is still away from the point of no return but said it could reach it soon enough after It shook off the worst selloff in the recent months without suffering too much. In our latest bitcoin news, we are reading more about his predictions.
Bitcoin is hotter than ever and now the topic of interest of top economists, hedge fund managers, and institutional investors is increasing. Wall Street is already starting to hold the digitally scarce asset in huge chunks. The surge of demand along with the diminishing supply caused a strong bullish breakout which sent the BTC price soaring by more than five times and the uptick in price appreciation has been predicted by the S2F creator but has only recently started to show validity. The model had some investors expecting the cryptocurrency to hit above $50,000 by May 2020 but the date is long gone and Bitcoin still has to reach this level. According to the model creator, BTC is able to soon reach this level and it will also reach the point of no return in this parabolic cycle.
#bitcoin $38K is nice, but I am still waiting for that larger monthly jump that usually marks the phase transition / the point of no return (red arrows) #phase5 pic.twitter.com/mWOLadqOys
— PlanB (@100trillionUSD) January 14, 2021
The stock-to-flow model tried to affix an estimated valuation on the BTC price based on scarcity but the hard-coded block reward halving mechanism diminishes the limited supply and when that occurred even though there wasn’t any immediate reaction that sent the price over $50K, it pushed BTC on a right way to do so. While there are stunning comparisons between 2017 and now, Plan B’s model shows that the bull run hasn’t started which is the point of no return as the model creator is referring to.
The charts show that the point of no return is where the crypto market cap will add another 600-800% to its value and a similar rise from these levels could put the price per BTC at $250,000 to $350,000 which is unrealistic now considering the targets in the short-term. the previous bull market over the current zone is pushing the top at a trajectory of around $325,000 as analysts offered targets higher than $500,000 per coin in the long-term. BTC rising higher from here is not as important but it is more important where the point of no return starts.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post