- PlanB, creator of the S2F model, believes Bitcoin could double in the next 3 to 5 months
- He states that miner revenue has bottomed, leading to harder mining difficulty
- Most of the crypto market is in the red, with BTC and ETH down 1.5% and 4.8% in the last seven days.
The crypto market has been quiet lately, as there’s been a sense of stability over the weekend. Yet many things have been said about Bitcoin and its potential price trajectory, especially since several important events will take place this week — Consumer Confidence data, Fed Rate Decision and Statement, June Jobs report, and about 20% of S&P 500 companies report earnings.
While the crypto market capitalisation is holding above US$2.3T, BTC, which is currently priced at US$66,118 (AU$101,105), is down 3.6% on the daily chart; almost everything is in the red.
Bitcoin Could Still Double, Says Plan B
Plan B, a popular anonymous analyst, says miner revenue has bottomed following the April 2024 halving as less profitable miners have been weeded out, and only those with the most efficient operations remain proficient. In this sense, the analyst expects BTC to double in 3 – 5 months from today.
Related: Michael Saylor Predicts $49M Bull Case for BTC at Nashville Conference
When asked how miner revenue bottom poses a bullish case for Bitcoin, PlanB stated:
Miner revenue bottomed means less profitable miners stopped. Only the most profitable miners (with newest equipment and lowest power cost) survived, the battle is over, difficulty will pump from here. And investors will take over pricing (based on a doubled S2F ratio).
Plan B The S2F model is simple —it measures Bitcoin’s value by comparing its existing supply (stock) to the annual new supply from mining (flow). In other words, Bitcoin will rise as long as the supply becomes scarcer, especially after halving events.
However, the S2F model has been criticised by many analysts who believe it’s oversimplified and heavily relies on historical data. Founders like Vitalik Buterin have said the model is misleading for investors, while others claim it ignores factors like demand, market sentiment, and macroeconomic conditions.
Related: Firing Gensler, a Bitcoin Bill and $4 Million BTC: Highlights and Wildest Predictions from Bitcoin 2024
To wrap up, while the S2F model has generated considerable popularity and controversy, many analysts have stated the importance of using multiple models in addition to S2F and always considering a broad range of factors that could influence Bitcoin’s price.
Source:
https%3A%2F%2Fcryptonews.com.au%2Fnews%2Fplan-b-comes-out-with-bullish-prediction-btc-price-ready-to-double-very-soon-122458%2F