Controversial BTC Model Showing BTC Rise To $288k Gets An Update
The crypto market looks really bloody today with most coins trading in the red after that bloodbath that kicked off the other day for ETH and BTC.
Bitcoin saw its largest one-day decline in about a month just after hitting $12k once again.
Bloomberg addresses the issue and notes, “After another failed attempt of breaking free from the $12,000 level, Bitcoin is starting to lose some momentum,” quoting Edward Moya, senior market analyst at Oanda.
Bitcoin $288k prediction gets updated
But this doesn’t mean that the optimistic predictions will fail to pop up.
There are all kinds of optimistic predictions about the price of Bitcoin and one of them is the popular claim that BTC will hit $288k.
Now, it’s been reported that the crypto analyst behind the controversial S2F Bitcoin price analysis model said that BTC is following his predictions just like clockwork.
PlanB’s latest version of the S2F, “the BTC S2F cross-asset (S2FX), enables the valuation of different scarce assets like silver, gold, and Bitcoin with a single formula,” as the online publication the Daily Hodl notes.
This predicts that Bitcoin will be worth $288,000 by the end of 2024. Plan B says that this prediction is on track so far.
— PlanB (@100trillionUSD) September 1, 2020
The controversial idea of applying S2F to BTC
It’s also important to note that crypto analysts are divided into two camps – one believes that it makes sense to apply the S2F model to BTC and others, on the contrary.
Grayscale, for instance, notes that commodities with high S2F ratios are typically sought after by investors.
On the other hand, the firm wanted the S2F price model does not guarantee an increase in the asset’s value.
“While it’s true that price has followed this stock-to-flow model with high correlation, the relationship may be spurious and does not take into account the requisite demand for price appreciation.”
At the moment of writing this article, BTC is trading in the red and the most important coin out there is priced at $11,334.79.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.