The last few days have not been the best for the crypto market. Well, although in short, since the end of last year the world of cryptocurrencies has lived the best period in its history, thanks to the great bullish rally in the price of Bitcoin. In recent weeks the price of the world’s first cryptocurrency has fallen sharply. Despite which, the crypto analyst PlanB predicts a Bitcoin at $ 500,000 in the next 6 months.
The betrayal of Elon Musk
For some heroes, for other villains, the truth is that Elon Musk is one of the most controversial figures in the crypto world. Well, despite having demonstrated its support for cryptocurrencies and Blockchain technology in recent months. Being, to a large extent, the driver of the great bullish rally experienced by Bitcoin and Dogecoin. Now it appears that Elon is backing down on his support for the crypto market.
And it is that, after months ago Tesla, Elon Musk’s company, began to accept Bitcoin as a form of payment for its electric cars. A few days ago the company decided to reverse this decision, suspending new vehicle purchases with BTC until further notice. Arguing that the energy expenditure of Bitcoin transactions is too high to continue to use the cryptocurrency and be environmentally responsible.
This, of course, caused a panic in the markets. Well, although Tesla announced that it would not sell its holdings in the cryptocurrency. Investors saw this as a signal to pull out of the market, sending the price of the coin plummeting in a matter of days from $ 59,000 to a floor at $ 46,716 per BTC. Which, however, has not intimidated analysts like PlanB.
The price of Bitcoin collapsed after Tesla’s announcement. Source: CoinDesk
PlanB trusts Bitcoin
Thus, the crypto market analyst, PlanB, has assured through his Twitter account that Bitcoin could be about to experience a new big bullish rally. This according to the statistical model prepared by him, stock-to-flow-model, which has allowed him to predict in general terms the main milestones of the crypto market in its history. And that would now point to an increase in the price of Bitcoin to $ 500,000 in the next six months.
yes, markets are (as always) probably overreacting to Elon’s betrayal, so beware you don’t miss the possible gigantic spike back up (like the 2nd half of 2013 bull market: if you sold below $ 100 on the news that US govt seized MtGox accounts, then you missed the spike to $ 1000)
– PlanB (@ 100trillionUSD) May 13, 2021
Yes, the markets are (as always) probably overreacting to Elon’s betrayal, so be careful not to miss the possible gigantic spike back to the upside (like the second half of the 2013 bull market: if you sold for below $ 100 when it became known that the US government confiscated the MtGox accounts, so you missed the peak up to $ 1000). In current terms that would be a jump from $ 50,000 to $ 500,000.
PlanB predicts a Bitcoin at $ 500,000. Source: PlanB
In this way, if the PlanB model is correct, we could witness one of the biggest jumps in value in the crypto market in the coming months. Which, however, seeing the current situation of the crypto-asset market, is still speculation that will depend on a return of investor confidence in BTC.
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