The lull in the price of Bitcoin has now been continuing for 2-3 months after digital gold had initially recovered well from the slump in the wake of the Corona crisis. The volatility is currently at a very low level that has not been seen since November 2018. As unspectacular as the current consolidation phase is, on the other hand, it must be acknowledged that the price of Bitcoin has nevertheless been up 29% since the beginning of the year.
Thus, BTC has so far outperformed many other asset classes by far. But can there possibly be more? The well-known crypto analyst PlanB now calculated on Twitter that the current BTC price, measured by the correlation of the asset with the S&P 500 share index, should actually be a proud $25,000.
If you want to read more about the price of Bitcoin and why PlanB analyst thinks it should be around $25,000, download for free our companion app Born2Invest. Read the latest financial headlines with the best online news aggregator.
Bitcoin rate on the way to $25,000?
The crypto-analyst PlanB is probably one of the most famous figures in the entire Bitcoin Space. This is mainly due to its mathematically very sound Bitcoin price models, such as the Stock-to-Flow model or the Stock-to-Flow Cross-Asset model. The former predicts a price of $100,000 for the next few years, while the latter even predicts a price of $288,000 in the period from 2020 to 2024.
Recently, however, PlanB has made headlines with a new kind of statement on the price of Bitcoin. He repeatedly refers to the correlation between the American S&P 500 share index and the BTC, which according to him is “correlated and co-integrated.”
In several posts in recent weeks, he has calculated the possible price of Bitcoin on the basis of the correlation, using the current status of the S&P 500. On Tuesday, July 21st, PlanB tweeted again about Bitcoin’s price and announced a possible price of $25.000 for the digital gold.
He wrote about this: “S&P500 and Bitcoin have been correlated and co-integrated over the last 10 years. Through the S&P implied BTC price: $25K … interesting times lie ahead!”
Probability for the price of Bitcoin to reach $20,000 by year end is at 4%
Whether the forecast for a Bitcoin price of $25,000 will materialize in the short to medium term remains to be seen, of course. However, PlanB’s statements are particularly interesting in connection with the latest findings of the cryptanalysis company Skew.
Many market participants consider it very unlikely that the price of Bitcoin will see new highs this year. A tweet from the company said that due to the massive drop in BTC volatility, “the options market has revalued the probability of Bitcoin reaching more than $20,000 by year-end to 4%.
Regardless of the question and disagreement over when the price of Bitcoin will be exactly where, the long-term potential of BTC as a digital asset remains enormous and the reasons for possible price increases are many and varied.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
BPER Bank’s call for crowdfunding “The future at your fingertips” has selected 5 projects
The 5 projects selected by the crowdfunding platform Produzioni dal Basso will now be able to access BPER's co-funding opportunity...
The first national clinical trial of a COVID-19 vaccine is now underway in Chile
The clinical trial, led by the Catholic University, together with other universities and the Sinovac Biotech laboratory, already has funding...
New study on the economic impact of the pandemic in Burkina Faso
A recent study conducted in Burkina Faso showed that the pandemic has negative consequences on income and food security in...
Demecan launches an online cannabis shop for pharmacies
Demecan has opened an online shop for direct sales to pharmacies. Although the Berlin-based startup is the only German company...
Could the price of Bitcoin reach $100,000 by 2021?
PlanB analyst was able to determine not only the current and future scarcity/hardness of BTC, but also a possible Bitcoin...
Featured6 days ago
Supply@Me Capital ready to close the first securitization of the overall €970 million program
Africa5 days ago
Rwanda will build a nuclear research center
Cannabis6 days ago
Medterra enters into a strategic partnership with Megalabs
Crypto7 days ago
The rise in Bitcoin’s price made 95% of the investment in cryptocurrency profitable