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Cryptocurrency : Bitcoin Continues to Fall and Community Loses Confidence of Hitting $ 100,000

Key facts:

The price of BTC fell 13% this week, which has triggered pessimism in the market.

Willy Woo believes that, in the short term, the major cryptocurrency will start to rebound.

The price of bitcoin (BTC) continues in free fall, even threatening to break the threshold of USD 30,000 during the early hours of this Saturday, June 26. The 13% decline in the last week has spread pessimism over the community, which is making it clear that it is losing confidence in the famous Stock To Flow (S2F) model, which the market analyst Plan B uses to project the price of the cryptocurrency. .

Although the price of the main cryptocurrency has lost more than 50% of its value since it was trading around $ 63,000 in April, “Plan B” estimates remain bullish by indicating that bitcoin can close the year 2021 above $ 100,000.

However, the researcher’s followers on Twitter say that they are ceasing to believe in his predictions. The analyst himself, in his account, invited his almost 600,000 followers to indicate what the price they expect by the end of the year. It was then that more than 40% of the 120,000 who participated in the survey, rules out the price reaching $ 100,000.

The S2F model is based on the theory that bitcoin is a store of value like gold or silver that maintains its value over the long term due to its relative scarcity. So, under this principle, Plan B correlates the stock or quantity of assets currently available, with the flow or quantity of bitcoins mined annually, to project where the price of the cryptocurrency can go.

Although many believe that it will break this year, since 2012 the price of bitcoin has complied with the parameters established in the Stock To Flow model, as can be seen in the following graph. It is projected that by the end of the year BTC could reach USD 91,000. However, this drop represents one of the biggest deviations of the model towards undervaluation, since 2013.

In any case, Plan B believes that the price for December will be above that estimate, because a couple of days ago it tweeted that, in its worst case scenario, for this year BTC will be around USD 47,000 for August, 63,000 for October and 98,000 by the end of the year.

Willy Woo is also bullish on what’s to come for bitcoin

Willy Woo is another of the analysts who are optimistic about a possible short-term rally in the price of bitcoin. Just a few hours ago he explained on Twitter why he thinks the cryptocurrency will be replenished this year.

The beginning of 2021 was defined by the incorporation of bitcoin from corporate treasuries, traditional funds, and high net worth. The second half of 2021 is being defined by the joining nations and millions of smallholders. The latter is what bitcoin was created for.

Willy Woo, cryptocurrency market analyst.

Woo believes that if at least the 4.5 million adults living in El Salvador adopt bitcoin, then this will be an immediate boost of 2.5% of the total number of users with which the network currently has.

He is convinced that, after all, bitcoin will win, because while some countries or places believe they should eradicate it, others will eventually continue to emerge where they will adopt it as part of their policy to raise capital.

What Woo refers to is the impact that the industry has recently received as a result of the fact that China has intensified its repression against bitcoin, as CriptoNoticias has been reporting. Meanwhile, expectations are growing about the countries that will follow the route of El Salvador with its Bitcoin Law.

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