Cryptocurrency analyst PlanB, renowned for his bullish stance on Bitcoin and the stock-to-flow model, has recently reaffirmed his optimistic long-term view on the leading cryptocurrency. PlanB believes that we might be witnessing the final days of Bitcoin trading below the $40,000 mark. In a recent analysis, PlanB emphasized the strong price surge that Bitcoin is expected to experience in the near future.
Bitcoin has shown outstanding performance this year, outpacing other asset classes with a price increase of over 125%. Many analysts believe that this growth is far from slowing down, and PlanB shares the same sentiment. Using the realized price model, PlanB suggests that this could be the last opportunity to buy Bitcoin below $40,000. The realized price calculates the average price of all Bitcoin in circulation and is considered by some experts as a more accurate measure of Bitcoin’s value compared to the current market price.
During bearish markets, the realized price tends to be higher than the spot price of Bitcoin, while bullish markets are characterized by a higher spot market price. PlanB’s analysis reveals that the spot price of Bitcoin is currently trading above the overall realized cost price, the 2-year realized price, and the 5-month realized price. Drawing from historical trends, this indicates a potential significant increase in the market price from this point onwards.
PlanB mentions, “Enjoy sub-$40k Bitcoin… while it lasts” in his tweet, suggesting that the price may soon rise above this level. At the time of writing, Bitcoin is trading at $37,687, with its realized price estimated to be around $21,000 according to Glassnode. When asked about the possibility of Bitcoin becoming cheaper again, PlanB neither confirmed nor denied it. However, he did predict that the cryptocurrency would trade between $100,000 and $1 million during the next halving cycle.
PlanB’s prediction aligns with the overall sentiment surrounding Bitcoin, as its mainstream adoption continues to grow. The anticipation of spot Bitcoin exchange-traded funds (ETFs) receiving approval in the United States further fuels the enthusiasm around the cryptocurrency. CoinShare’s latest report reveals that Bitcoin has witnessed a year-to-date (YTD) inflow of $1.238 billion into its digital asset investment products.
The discount on Grayscale’s Bitcoin Trust, an investment vehicle for institutions, has reduced from -48% at the beginning of the year to -7.31% as of now. This reduction indicates that institutions are increasingly buying into the trust, reflecting a growing bullish momentum. If the discount turns positive, it would mean that the price of the trust surpasses the spot price of Bitcoin, a situation that has not occurred since the first quarter of 2021.
According to a previous prediction by PlanB, Bitcoin’s price is expected to range between $32,000 and $66,000 during the next halving, which is scheduled for April 2024. This prediction further strengthens the notion that Bitcoin’s upward trajectory is far from over.
Cryptocurrency analyst PlanB presents a compelling case for Bitcoin’s continued price surge. With Bitcoin outperforming other asset classes this year and displaying a higher spot price than its realized price, there is a strong indication that the market price has the potential to rise significantly. Coupled with the increasing mainstream adoption and institutional interest in Bitcoin, there is a growing optimism that the cryptocurrency will continue to see substantial growth in the long term. However, it is essential to note that investing in any cryptocurrency carries risks, and individuals should conduct thorough research and consider their own financial situation before making any investment decisions.