Closely followed quantitative analyst PlanB says Bitcoin (BTC) is now on track to expand by trillions of dollars to compete with some of the largest asset classes.
The pseudonymous analyst tells his 1.8 million Twitter followers that Bitcoin is now in the early stages of a bull market, potentially allowing big players like BlackRock to collect BTC while it is low.
“Is in phase 1 early bull market (blue). Of course, BlackRock wants to buy cheap, just before ETF approval, and just before Phase 2 full bull market.”
PlanB popularized the use of the stock-to-flow (S2F), which aims to measure the newly created supply of an asset created over time relative to the existing supply. After Bitcoin’s next halving, which halves the newly created BTC issued to miners, PlanB says the S2F will suggest that the king crypto will eventually become scarcer than real estate, and extremely undervalued compared to other commodities such as gold, silver and diamonds.
“Bitcoin (S2F 58, market cap $400 billion) is extremely undervalued compared to:
– gold (S2F ~60, market value ~$10T)
– diamonds (S2F ~40, market value ~$1T)
– silver (S2F ~30, market value ~$500B)
How will markets react after the 2024 halving, when BTC S2F goes to ~110 (>real estate)?”
In a new strategy session, PlanB says he envisions the crypto king rising in price to around $50,000 as Bitcoin nears its next halving.
says the analyst
“The big question is [what] will the price of Bitcoin be at the April 2024 halving? We can try to estimate that just from this 200-week moving average…
The 200-week moving average is currently rising by about $500 per year [month]so nine times $500 becomes $4,500, and Bitcoin’s 200-week moving average is now just under $28,000, so $28,000 plus $4,000 is good [a] $32,000 dollars (200 weeks) moving average at the approximate halving.
And Bitcoin would be above that right, and usually it would be 50% above that, which would indicate a range of Bitcoin at the halving between $40,000 and $50,000.”
Don’t Miss Out – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
Shutterstock/Chuenmanuse
