Bitcoin ends stable week, but S2F maker believes $40,000 in 14 days

Bitcoin ends stable week, but S2F maker believes ,000 in 14 days

Spending between $22,300 and $23,300 almost every week, Bitcoin remains stable after a 40% increase from the 1st. However, some analysts believe that BTC could double in value in the near term.

Known only by the pseudonym PlanB, the creator of the controversial Stock-to-Flow (S2F) model believes Bitcoin can repeat what it did in January of last year, when it went from $22,700 to $40,400 in just $22,700. two weeks.

However, some of his followers doubt this projection. Citing the macroeconomic scenario – probably referring to high interest rates by central banks – one of them points out that the current moment is very different from the previous one, but such an argument failed to convince PlanB.

What will the Stock-to-Flow (S2F) model look like in 2023?

When Bitcoin boomed in 2021, many believed that Stock-to-Flow was the recipe for success. After all, the model follows the price of Bitcoin since its inception, in 2010, without large margins of error downwards.

However, his prediction that Bitcoin would reach $98,000 was clearly wrong. Even worse, Bitcoin entered a strong bear market, losing 77.57% of its value in one year as the Fed hiked interest rates monthly.

PlanB came to acknowledge the mistake, only to be slaughtered by the community. On the date, one of them stated that the model was not useful because it was scientifically invalid. Even Vitalik Buterin joked about Stock-to-Flow at the time, noting that the model deviated from reality.

According to Stock-to-Flow, Bitcoin should trade at $109,418.24 in January 2023. However, we are at $23,143.95, an error of almost five times.

The Stock-to-Flow (S2F) model in 2023 remains far from its target price. Source: Buy Bitcoin Worldwide.

Will Bitcoin Return to the S2F Line? The Plan B bet

Bitcoin’s recent rally has led some analysts to believe that Bitcoin could break its all-time high in 2021 and reach $100,000 within the next few years. This would give the Stock-to-Flow (S2F) model the benefit of the doubt.

PlanB, on the other hand, seems to be more in a hurry. Via his Twitter, the creator of S2F said he believes in a large appreciation in the short term, with Bitcoin almost doubling in value.

“From $22,000 to $40,000 in 14 days…not impossible”wrote PlanB this week noting that Bitcoin jumped from $22,700 to $40,402 in just two weeks in January of last year.

One of his followers even claimed the analyst was under the influence of opium – a jargon used in the market to say someone is too optimistic – noting that the macroeconomic scenario looks very different than in 2021.

“Scarcity > macro”PlanB replied.

Finally, the next event that could push Bitcoin’s price higher is the next meeting of the US central bank, which will be held next Wednesday (Feb 1). Should the Fed give up on interest rate hikes, it is possible that Bitcoin will skyrocket again. However, the opposite could also happen, which would cause Bitcoin to fall to its previous lows, as highlighted by Arthur Hayes.

Therefore, the week ahead appears to be decisive in determining the near-term future of Bitcoin – and PlanB’s bet. Anyway, after a quiet week, volatility in the next seems guaranteed, the same goes for other cryptocurrencies.

Source: Live Coins