Currency

BTC price model creator: Bitcoin bull market ‘2nd leg has started’

Bitcoin (BTC) marking a new high of $67,000 last week has opened the possibility of hitting $100,000 by the end of this year.

PlanB, creator of the popular Bitcoin Stock-to-Flow (S2F) model, called Bitcoin’s price retracement from the $60,000-level the “2nd leg” of what appeared like a long-term bull market.

In doing so, the pseudonymous analyst cited S2F, which anticipates Bitcoin to continue its leg higher and reach $100,000 to $135,000 by the end of the year.

The price projection model insists that Bitcoin’s value will keep on growing until at least $288,000 per token due to the “halving,” an event that takes place every four years and reduces BTC’s issuance rate by half against its 21 million supply cap.

Notably, Bitcoin has undergone three halvings so far: in 2012, 2016 and 2020.

Each event decreased the cryptocurrency’s new supply rate by 50%, which was followed by notable increases in BTC price. For instance, the first two halvings prompted BTC price to rise by over 10,000% and 2,960%, respectively.

The third halving caused the price to jump from $8,787 to as high as $66,999, a 667.50% increase. So far, S2F has been largely accurate in predicting Bitcoin’s price trajectory, as shown in the chart below, leaving bulls with higher hopes that Bitcoin’s post-halving rally will have its price cross the $100,000 mark…read more.

Peter Thiel says bitcoin at $60,000 is a sure sign the ‘decrepit’ political system is about to implode

The US political system is not sustainable and the skyrocketing price of the decentralized cryptocurrency bitcoin underscores that point, says tech billionaire Peter Thiel, according to a report from The Information.

“I don’t know that you should put all your money into bitcoin at $60,000 a bitcoin right now,” Thiel said at a Monday night gathering of the Federalist Society, a conservative law group. “But surely the fact that it is at $60,000 is an extremely hopeful sign. It’s the canary in the coal mine. It’s the most honest market we have in the country, and it’s telling us that this decrepit… regime is just about to blow up,” he said.

The venture capitalist made his comments before bitcoin blasted higher Wednesday to a new all-time record high of $66,812.68 on the back of Tuesday’s trading debut of ProShares Bitcoin Strategy ETF, the first bitcoin-futures exchange-traded fund. The price of the world’s most-traded digital coin overtook the previous all-time high of $64,804.72 logged in April, around the time when crypto exchange Coinbase went public.

Thiel has made crypto-industry investments through VC firms he’s helped establish, including the Founders Fund. He is a backer of 1confirmation, along with Marc Andreessen and Mark Cuban…read more.

Mark Cuban says that bitcoin will be ‘the safe haven of crypto’ with one ‘huge advantage’

To billionaire investor Mark Cuban, bitcoin has a major edge over other cryptocurrencies.

It has “a HUGE advantage” in that it has “ZERO competition” as a store of value, Cuban tweeted on Saturday. Cuban even calls bitcoin “the best store of value on the market.”

In his opinion, that’s due to its algorithmic scarcity, which makes bitcoin limited in supply by design. Because of this, Cuban sees bitcoin as an asset that will appreciate as demand increases. He has previously compared it to gold, even saying that bitcoin is a better store of value than gold.

The “Shark Tank” investor and Dallas Mavericks owner is so bullish on bitcoin that he predicts that it, along with Ethereum, will be viewed as “safe havens” in crypto in the future, meaning that bitcoin will be seen as an asset that will keep its value or grow in value, even when the overall crypto market faces turbulence.

But despite Cuban’s comments, keep in mind that financial experts generally consider cryptocurrency risky, volatile and speculative, and warn that investors should only invest what they can afford to lose…read more.

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Bitcoin climbed above $60,000 Friday, pushing the digital coin further toward its all-time high, as traders speculated U.S. regulators would clear the first bitcoin futures exchange-traded fund.

The world’s biggest cryptocurrency surged as high as $60,314, notching its highest level since Apr. 18. Bitcoin was last trading 4% higher in the last 24 hours, at a price of $59,945, according to Coin Metrics data.

Traders are optimistic about the chances of the U.S. Securities and Exchange Commission giving the green light to the first bitcoin futures exchange-traded fund, according to analysts.

The ProShares Bitcoin Strategy ETF is scheduled to debut at the New York Stock Exchange on Tuesday, and experts believe the SEC unlikely to object to the product…read more.

These are the 3 main drivers behind bitcoin’s 35% rally over the past week, according to JPMorgan

Bitcoin has staged an epic rally since its lows near $40,000 in late September, surging almost 35% and easily passing by key technical resistance levels.

Driving bitcoin’s surge past a $1 trillion market valuation are are range of factors, including increased appetite from institutional investors who are seeking a hedge to inflation, JPMorgan said in a note on Thursday. Bitcoin’s growing role as a perceived inflation hedge has taken the wind out of gold prices, which have been flat for almost two years even as concerns about rising inflation grow.

“Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold,” JPMorgan said, adding that the prior trend of money flowing out of gold and into bitcoin has reemerged in recent weeks.

JPMorgan offered three main drivers as to why bitcoin rallied from $40,000 to about $55,000 in a matter of weeks, according to the note.

1. “The recent assurances by US policy makers that there is no intention to follow China’s steps towards banning the usage or mining of cryptocurrencies.”
2. “The recent rise of the Lightning Network and 2nd layer payments solutions helped by El Salvador’s bitcoin adoption.”
3. “The re-emergence of inflation concerns among investors has renewed interest in the usage of bitcoin as an inflation hedge.”…read more.