Stock to Flow Model Creator PlanB Reasserts His Bitcoin (BTC) Price Prediction of US$135,000 to US$450,000 in 2021
PlanB, the creator of the Stock-to-Flow analytics model, has reiterated his bullish Bitcoin price projection in 2021 even as the Bitcoin price slumped closer to the US$30,000 level. He believes that the BTC price will vary from the worst-case scenario of US$135,000 to the best-case scenario of US$450,000.
In his tweet, PlanB said that the Bitcoin market is currently rattled by the FUD (Fear, Uncertainty, and Doubt) created by the double-whammy of comments made by Tesla CEO and billionaire Elon Musk and the massive clampdown on the mining activities by the Chinese authorities.
Despite record participation of the retail investors and greater participation of the institutional investors, there has been a steep correction of the Bitcoin (BTC) price against the US Dollar in just 2-months. After reaching an all-time high (ATH) at US$64,863.10 on April 14, 2021, the BTC/USD pair has dropped by around 50% to the current level of US$32,951.53.
The massive energy used by Bitcoin and other cryptocurrencies based on the Proof-of-Work (PoW) model has raised huge concerns across the world. Especially after Elon Musk’s tweets about Tesla’s refusal to accept BTC as a mode of payment for carbon emission concerns have made a body blow to the Bitcoin network. Coupled with this is the recent clampdowns of China on the crypto mining farms. They made the price of BTC fall drastically.
Stock-to-Flow’s creator, PlanB, believes that the poor price performance of BTC is likely to continue in July 2021 and the resurgence will take place only after that. He believes that by August 2021, the BTC/USD price will retest the US$47,000 level.
PlanB says that his stock-to-flow model shows that the price may again fall to the US$43,000 level in September 2021. He goes on to predict that the BTC price against the US Dollar will retest the US$63,000 level by October 2021. According to him, the last two months of the year (November 2021 and December 2021) will be highly bullish. It is highly likely to make the BTC price soar to US$98,000 and US$135,000 levels respectively.
PlanB (@100trillionUSD) tweeted:
“Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crack down. There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K”
PlanB also underscored the fact that his projections are based on the worst-case scenario. He went on to say that in a best-case scenario, the BTC/USD pair may rise to a new all-time high (ATH) at US$450,000.
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