Bitcoin had a rough start in May as its upward trajectory appears to have reached its peak after a bullish quarter.
However, prominent crypto analyst PlanB predicts that the average price of the world’s largest cryptocurrency could reach around $500,000 from 2024 to 2028, according to his Stock-to-Flow model.
Another Bold Bitcoin Prediction
In his latest analysis, PlanB stated that bitcoin’s performance in April revealed a closing price of $60,632, marking the end of the previous halving cycle. This closing price essentially indicates the completion of a cycle.
Despite falling slightly below the Stock-to-Flow (S2F) model’s prediction of $55k, the average price over the 2020-2024 halving cycle stands at $34k. His analysis of May signals the start of a new countdown to the next halving.
Bitcoin April closing price $60,632
This was the last blue dot (month 0). Average price 2020-2024 halving cycle $34k (slightly below S2F 2019 $55k prediction). May will be the first red dot, the start of the new countdown to the next halving (S2F 2024-2028 prediction: ~$500k). pic.twitter.com/BPqNy0cTUg
— PlanB (@100trillionUSD) May 1, 2024
The analyst’s S2F model also predicts around $500K for the 2024-2028 period. However, bitcoin’s recent price action tells a different story, as it hit multi-month lows on May 1st, dropping to $56,555, the lowest level since February.
With bitcoin recording its worst month since November 2022, the leading cryptocurrency has struggled to recover, currently sitting at $57,300 after a 7% drop over the past day. These recent losses extend to nearly 20% for the month.
Warning Before the Fall
Bitcoin’s latest plunge was already predicted by QCP Capital, which stated that the market was gearing up for a volatile trading session, citing several key indicators. The launch of Hong Kong’s spot Bitcoin and Ether ETFs, for one, with volumes far below expectations at $8.5 million for BTC and $2.5 million for ETH, signaled a disappointing start.
The crypto hedge fund also noted that this could suggest that institutional interest in crypto may be more concentrated in the US, while Asian interest leans towards private wealth and local dominance. Additionally, with Amazon earnings and the sentencing of Binance founder and former CEO CZ due that evening, the stage was set for heightened volatility.
“The market is trading heavy on the back of this with BTC touching 61k and ETH close to 3k. With Amazon earnings and CZ’s sentencing coming out this evening, we might be looking at a volatile session into New York hours.”
The post Here’s When BTC Price Will Tap $500K: PlanB’s S2F Model Remains Unfazed Amid Market Correction appeared first on CryptoPotato.
