Bitcoin (BTC) racing towards $60,000 despite turbulence

The value of Bitcoin (BTC) has fallen after reaching $30,000 recently. However, these trends are not stopping predictions that its price will explode. Some believe the asset could be worth at least twice its current price within a year. Here’s the reason for their predictions.

BTC price to double, according to the S2F model

After reaching the $30,000 point, the valuation of bitcoin (BTC) has dropped significantly in recent days. The unit of the leading crypto is currently worth about $27,600.

This is nothing to be alarmed about for PlanB, a pseudonymous crypto analyst. He believes that within a year, the Bitcoin should be worth at least $60,000. This figure is obviously a 2-fold increase from the recent high reached by BTC.

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This Will Be Bitcoin's Price During the Next Halving, According to PlanB's S2F Modelhttps://t.co/oy4HXAFIR1
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His projections are based on the Stock-to-Flow (S2F) model. This is an economic theory that PlanB applies to Bitcoin. According to its precepts, there would be a relationship between the quantities of BTC currently available on the market, and those created each year.

The correlation between these two quantities would be the reason for the scarcity of Bitcoin. A situation that, itself, would influence the increase in value of the queen of cryptos. At first glance, his theory could be defended, given that the scarcer an asset is, the more valuable it is considered. As a result, its prices explode.

From that point of view, PlanB’s prediction of a doubling of Bitcoin’s price could be sustainable. Unless you consider that his analysis is not really supported by the crypto analyst community.

Despite its relevance, the S2F model is indeed subject to several criticisms. Some have felt that this theory lacks precision in particular. However, it is true that during the first years of its existence, the method has shown its predictive efficiency.

But recently it seems to have run out of steam, as recent projections based on this theory have failed miserably. For example, PlanB predicted that Bitcoin would exceed a six-figure valuation by the end of 2022. The crypto community is still waiting for this prophecy to come true!