Despite the gloom and doom seemingly surrounding Bitcoin, some analysts continue to have a positive outlook on the cryptocurrency.
Plan B, a renowned bitcoin analyst and maker of the price model, stock-to-flow, made an important announcement last month. He claimed that it’s not over for bull. He is confident in his analysis and made another affirmation on August 6 as he made his findings amidst the steady decline of the crypto. Bitcoin prices slipped Sunday, toppling their peak of $45,355.
In the United States, Bitcoin has faced regulatory uncertainty, as there has been continuous price tearing. However, Bitcoin is known to have a greater turnout as it reached 11% gains in just seven days and garnered 31% against US dollars, making it the leading crypto asset.
Plan B optimistic Bitcoin will bounce back
So who is Plan B, and why does his opinion that Bitcoin’s “bull run is not over” matter?
Plan B gained popularity as he featured in bitcoin.news with his S2F model known to stock traders in 2019. In addition, he updated the model into a stock-to-flow cross-asset (S2FX) model, spotlighting leading sites that are inclined to document models.
Around June 1, bitcoin.com reported that the S2FX model remained as helpful as it was in 2013. There are stirring comparisons between the 2013 bull run where BTC did a double top and its current situation.
In August, Plan B explained Bitcoin’s realized capitalization, adding that it is “rising.” He was referring to the 18.77 million BTC average price transacted.
There are also expectations of reward halving in the total BTC circulation, which reached 18,779,913 BTC. The prediction was it will happen around 1,008 days from now. It will cause scarcity in BTC issuance and reduction of block rewards to at least 3.123 coins per block post halving.
Plan B’s models wish to address the scarcity and decline in issuance rates in cryptocurrency. His stock-to-flow model is about quantifying the abundance or depreciation of Bitcoin’s rate of issuance. He did this by dividing the current BTC stock by the BTC flow produced yearly.
He also described the use of this model in terms of other commodities like precious metals. However, he classified Bitcoin differently, saying that it has a higher S2F ratio, and in the long run, crypto would either conserve its value or would tremendously increase with significant demands.
‘Floor at 47K in August’, claims Plan B
Let’s go back to Plan B’s unwavering confidence. The valuation market reached a trillion in overall value, and the BTC price jumped to $55K per unit zone after May 2020. Then, on July 2, he retweeted what he said, highlighting that the bull is not over and the ceiling wasn’t 64K.
He also analyzed that it will not go below $47K in August. However, he also gave clarifications that he did not base it on his S2F model.
So the question for you is, do you have the same confidence with Plan B’s current assessment?