PlanB, the creator of the Stock-to-Flow (S2F) model, recently shared a contrarian yet calming prediction regarding the price of Bitcoin (BTC). In a post on X, he underscored that Bitcoin’s value is projected to remain resilient, with a firm assurance that it will not dip below the $35,000 threshold.
Supporting his viewpoint with a chart illustrating the correlation between Bitcoin’s valuation and its inherent hashrate, PlanB suggested that, barring unforeseen events or short-term market fluctuations, and considering the fundamentals of $/kWh arbitrage, the leading cryptocurrency’s market value is unlikely to retreat below the $35,000 support level.
Reiterating his perspectives in subsequent posts, he emphasized the existing arbitrage dynamics between Bitcoin miners acquiring the asset through electricity and users purchasing it with cash on exchanges. According to him, this arbitrage could deepen with the impending ETF, potentially leading miners to command a premium for the cryptocurrency based on their unique market insights.
As the architect of a widely adopted market analytics model, PlanB consistently presents compelling predictions across various assets, particularly Bitcoin. Firm in his belief that a Bitcoin price of $100,000 is a conservative estimate, PlanB has recently advocated the idea that Bitcoin’s trading range in the near future could span between $65,000 and $524,000.
Present State of Bitcoin and Market Forecasts
The PlanB forecast coincides with a significant market retreat, signaling a potential bearish takeover. Presently, Bitcoin is valued at $37,106.80, reflecting a 1.07% decrease in the last 24 hours.
Despite the prevailing downturn, the asset’s price appears to be a considerable distance from reaching the $35,000 level, thus supporting PlanB’s predictions. The growing demand within the market for the approval of a Bitcoin spot Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC) introduces another dynamic that could enhance market resilience.
The anticipation of a Bitcoin ETF, with a probability of 90%, has fueled numerous optimistic forecasts for BTC, including speculations of its potential to surpass $600,000, as suggested by Cathie Wood of Ark Invest.