While the PlanB projection is based on a worst-case scenario, the analyst says on a best-case basis, Bitcoin may climb to a new ATH of $450,000.
Iconic crypto market analyst and the creator of the Stock-to-Flow analytics model PlanB has given the worst-case projection for Bitcoin (BTC) based on the elements of his tool. Taking to Twitter, PlanB noted that the current price plunge in the market was stirred by Elon Musk’s energy FUD (Fear, Uncertainty, and Doubt), as well as the massive clampdown on the mining activities in China.
The global cryptocurrency industry has received an awakening when compared to the year-ago period. More than ever, we have seen the inflow of institutional funds into the crypto market space, bolstered by a massive engagement of retail traders. While the space has showcased a potential for massive growth, the market in recent times has been held bound by the energy usage concerns of Bitcoin and other Proof-of-Work (PoW) models.
These FUD being spread by the duo of Tesla boss and Chinese authorities have caused a cataclysmic plunge in the price of Bitcoin, with the premier cryptocurrency dropping by a massive 49.34% from its all-time high (ATH) price of $64,863.10 set on April 14. With three months of bearish dives underway, PlanB believes there is a likelihood the poor price performance continues into July, beyond which we may begin to see a resuscitation.
According to PlanB, Bitcoin is likely to retest a price of $47,000 by August. Following this upshoot, we may experience a retracement in September as the Stock-to-Flow model projects a drop to $43,000. In the forecast shared, the way from here is upward with an anticipated retest of $63,000 by October. The projections for the last two months of the year, November and December were also bullish per the worst-case scenario, with Bitcoin billed to soar $98,000 and $135,000 respectively.
Bitcoin is below $34K, triggered by Elon Musk's energy FUD and China's mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (@100trillionUSD) June 20, 2021
The role being assumed by PlanB with respect to his bullish Bitcoin price forecasts is one of succor and the current market sentiment is extremely poor.
PlanB Bitcoin Price Forecast May Be Aided by a Rapid Switch to Clean Energy
The ultimate reason why the global crypto market is experiencing a downturn is because of the energy-intensive mining operations. The influence of Bitcoin in the broader industry has further affected other highly energy-efficient assets. The projections from PlanB may be fast-tracked and made more feasible should miners begin the switch to alternative mining operations with clean energy in view.
While electric automaker, Tesla Inc (NASDAQ: TSLA) has hinted at its willingness, through its CEO, to resume accepting Bitcoin for payments once crypto mining has achieved at least a 50% adoption of clean energy, other mainstream institutions may follow suit. Bitcoin’s energy footprint is doing more harm than good, and the embrace of initiatives that maximizes renewable energy can lead to a skyrocketing in the price of the asset, and the entire digital currency ecosystem.
While the PlanB projection is based on a worst-case scenario, the analyst says on a best-case basis, Bitcoin may climb to a new ATH of $450,000.
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