As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market ups and downs. Bitcoin’s recent dip in May came as no surprise to me, given the analysts’ predictions and market indicators pointing towards a volatile trading session.
In May, Bitcoin experienced some turbulence as its price growth seemed to level off following a strong bullish trend during the previous quarter.
According to well-known crypto analyst PlanB’s predictions based on the Stock-to-Flow model, Bitcoin’s average price is anticipated to hit approximately $500,000 between the years 2024 and 2028.
Another Bold Bitcoin Prediction
In his most recent assessment, PlanB noted that Bitcoin’s April performance concluded with a closing price of $60,632, signifying the finish of the previous bitcoin halving cycle. Essentially, this closing price represents the end of that particular phase.
Although the Stock-to-Flow (S2F) model forecasted an average price of around $55,000 during the 2020-2024 Bitcoin halving cycle, the actual average price came in at approximately $34,000. Looking ahead, his analysis of the May period marks the beginning of a new sequence leading up to the next bitcoin halving event.
The April closing price for Bitcoin in 2021 was $60,632. This marks the end of our current cycle, with an average price during the 2020-2024 halving period being around $34,000 – just below the S2F prediction of approximately $55,000 for 2019. The coming month of May will be the first in a new cycle, leading up to the next halving event and its predicted price range of around $500,000 between 2024 and 2028.
— PlanB (@100trillionUSD) May 1, 2024
The analyst’s S2F model indicates approximately $500K in potential value for bitcoin between 2024 and 2028. Yet, the cryptocurrency’s recent market behavior contradicts this forecast as it plummeted to a multi-month low of $56,555 on May 1st – its lowest point since February.
Bitcoin, the front-runner cryptocurrency, is experiencing its most disappointing month since November 2022, with a current value of $57,300 following a 7% decline over the previous day. This downward trend translates to almost a 20% decrease in value for the month.
Warning Before the Fall
As a crypto investor, I’ve noticed that QCP Capital had warned us about the potential volatility in the market before Bitcoin took its latest dive. They pointed to several key indicators that suggested turbulence was on the horizon. For instance, the lackluster performance of Hong Kong’s new spot Bitcoin and Ether ETFs, with volumes significantly below expectations at $8.5 million for Bitcoin and a mere $2.5 million for Ethereum, was a clear sign that things weren’t going as planned.
A crypto hedge fund pointed out that this development might indicate a greater focus among institutions on cryptocurrencies in the United States, whereas Asian investment seems to prioritize private wealth and local control. Moreover, with Amazon releasing its earnings report and the sentencing hearing for Binance‘s founder and ex-CEO CZ scheduled for the same evening, market fluctuations were expected to intensify.
The cryptocurrency market is experiencing significant activity today, as Bitcoin reaches nearly $61,000 and Ethereum hovers around $3,000. With Amazon’s earnings report and the sentencing of Binance CEO Changpeng Zhao scheduled for this evening, we can expect heightened volatility in the hours leading up to New York trading hours.
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2024-05-01 15:52