Dutch Bitcoin (BTC) analyst PlanB, who has gained global fame thanks to his Stock-to-Flow (S2F) model, has made a notable statement about the social media platform being below $35,000 for an extended period of time. Dollar will trade. This prediction is based on an increase Hashrateor the entire computing power of the Bitcoin network.
🎁 This week: Trade your first €10,000 in crypto completely free
Bitcoin rating based on difficulty
PlanB shared a new X post with his 1.8 million followers yesterday discussing the rising value of Bitcoin due to the difficulty of the mining process. He wrote that in this context, the price of Bitcoin rose to $35,000.
🚨BREAKING: Bitcoin valuation based on difficulty (hashrate) rose to $35,000 yesterday. In my opinion, this could mean that barring any possible black swans or short-term volatility, based on the $/kWh arbitrage fundamentals… BTC will never fall below $35,000 again. pic.twitter.com/JPLkXieQAP
— PlanB (@100trillionUSD) November 27, 2023
The difficulty of Bitcoin mining directly depends on the hashrate of the network. The more computing power is used, the more difficult it becomes to mine a new block of transactions. This principle keeps the production speed of the blocks constant at around ten minutes.
Investors buy Bitcoin with dollars and miners buy Bitcoin with kilowatt hours (kWh). There must be a relationship/arbitration,” PlanB wrote in a reply to someone else.
The Mining difficulty has risen incredibly quickly in recent months thanks to increasing competition in the mining sector. “So, what do miners know that investors don’t (yet) know, or… buy ETFs through miners?”
The former institutional investor does not 100 percent rule out that Bitcoin will never fall below $35,000 again, but in his opinion this price level now represents “a fundamental floor that is not so easy to break, especially in the long term.” In his opinion, a so-called “black swan event,” which refers to an unpredictable event such as the outbreak of the COVID pandemic, could cause the stock price to fall below $35,000.
Bitcoin price to $524,000?
Last Saturday PlanB also said it would not be surprising if the majority of all Bitcoins between $65,000 and $524,000 were transferred over the next four years. At the time of the next halving, which will take place sometime in April next year, most Bitcoins will trade between $16,000 and $65,000.
So far, the upper limit has always been multiplied by a factor of 4, but PlanB does not rule out that the next cycle will be more explosive than the previous one. Because there are several macro factors that influenced the 2021 cycle, such as the corona pandemic and the mining ban in China.
Post views: 0