Stock to Flow Model Creator PlanB Projects $135K Worst Price for Bitcoin in 2021

On Jun 21, 2021 at 9:16 am UTC by · 3 min read

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.

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.

Share:

Related Articles

Goldman Sachs Strategists Say Mainstream Adoption Won’t Boost Crypto Prices

By January 28th, 2022

As the Goldman Sachs strategists shared their broad opinion on crypto prices, they made reference to the role new innovations like metaverse is likely to herald.

First European Politician from Belgium to Accept Bitcoin in His Salary

By January 28th, 2022

Belgian MP Christophe De Beukelaer said that he will be accepting his salary in Bitcoin throughout 2022.

Toyota Defeats Volkswagen, General Motors to Become Biggest Car Seller for 2021

By January 28th, 2022

For the second consecutive time, Japanese automobile giant Toyota is the biggest car seller in the world, beating out other major brands.