Stock-2-flow (S2F) model creator PlanB has an unpopular but reassuring prediction for the price of bitcoin (BTC). In one of his posts on X, PlanB insisted that the price of bitcoin will never go below $35,000 again.
He presented a chart arguing that bitcoin’s valuation has increased based on its inherent hashrate. He said that in his opinion, barring possible black swan events or short-term volatility, and based on the $/kWh-arbitrage fundamentals, the market value of the premier asset will not fall below the $35,000 support.
He reiterated his insights in some follow-up posts, highlighting the arbitrage that exists between bitcoin miners buying the asset with electricity and users buying with cash on exchanges. For him, this arbitrage could deepen with the upcoming ETF, and miners selling the cryptocurrency could charge a premium based on their unique knowledge of the market.
As the creator of a widely used market analysis model, PlanB presents one on several assets, especially bitcoin. PlanB is one of the analysts who believes that a bitcoin price of $100,000 is a conservative estimate for the digital currency. He has recently been pushing the narrative that bitcoin will trade between $65,000 and $524,000 in the near future.
Current Bitcoin Outlook and Market Forecasts
The PlanB forecast comes at a time when the market is experiencing a major pullback as a bearish takeover appears to be underway. Bitcoin is currently trading at $37,106.80, down 1.07% in the past 24 hours.
Despite the encompassing drawdown, the asset’s price still seems far from falling to the $35,000 price level, validating PlanB’s predictions. The approval of the spot bitcoin exchange traded fund (ETF) by the United States Securities and Exchange Commission (SEC) has added another twist that could bolster the market’s resilience.
The expectation of a bitcoin ETF, pegged at a 90% probability, has fueled a lot of bullish predictions for BTC, including its potential to soar beyond $600,000, according to Ark Invest’s Cathie Wood.
