- Bitcoin remains above USD 7,000 for 24 hours as sentiment turns bullish
- PlanB says Bitcoin halving will prove his stock-to-flow model, predicting a USD 30,000 price by the end of 2020
- Trump appoints ex-Bakkt CEO and Republican senator Kelly Loeffler to post-coronavirus task force
Bitcoin price finally enjoyed the break it had hoped for, pushing past USD 7,000 and staying above there for an entire day as the weekend approaches, turning sentiment for the short-term slightly but certainly bullish.
With only 25 days left estimated to the Bitcoin reward halving event, Bitcoin trades at a daily high so far of USD 7,200 (CoinDesk) just as the US is about to wake up.
And speaking of Bitcoin halving, crypto influencer PlanB, who is credited with creating the Stock to Flow model for Bitcoin price, now says that that much-anticipated event will really be the event that determines just how the world’s most widely-used digital asset will perform in the coming months.
IMO #bitcoin 2020 halving will be like 2012 & 2016. As per S2F model I expect 10x price (order of magnitude, not precise) 1-2 yrs after the halving. Halving will be make-or-break for S2F model. I hope this halving will teach us more about underlying fundamentals & network effects pic.twitter.com/kiTdN0n3Lu
— PlanB (@100trillionUSD) April 16, 2020
It is a do or die event, he said, Tweeting out his opinions that he himself believes that price can only be increasing by “an order of magnitude” in the period of two years after the May halving. For him, he says there can only be a replication of the periods in the past two halving events, based on his own price model. He wrote:
“(In my opinion) #bitcoin 2020 halving will be like 2012 & 2016. As per S2F model I expect 10x price (order of magnitude, not precise) 1-2 yrs after the halving… Halving will be make-or-break for S2F model. I hope this halving will teach us more about underlying fundamentals & network effects.”
In his model, stock to flow is a measure of how many new coins are generated into the supply against already circulating supply. So far, this model has proven to be highly accurate in predicting price performance. If it continues to be accurate, we should see a USD 30,000 price tag by the end of 2020.
PlanB also addressed questions that asked if Bitcoin would continue to correlate to traditional markets, as it had done in March when it crashed along with oil, gold and stock markets during the infamous March Black Thursday event following the coronavirus pandemic declared by the World Health Organization. With that memory still fresh in the minds of many, traders fear that Bitcoin could crash again if the stocks do a repeat this year amid concerns of a global economic crisis. PlanB conceded the pattern but insisted it was only temporary, saying that he would ditch his own model if price did not go as planned:
“During crisis everything is correlated. What’s next is what’s interesting. They will not be correlated forever (in my opinion).”
Returning to the issue of the economy, in the United States, Republican senator for Georgia, Kelly Loeffler, has now been appointed to President Donald Trump’s new post-Covid19 task force. Loeffler gained fame earlier as the CEO of Intercontinental Exchange subsidiary Bakkt — the entity whose Bitcoin futures had been a hyped event at some point in 2018 and 2019, but has since been involved in a number of controversies.
With 22 million Americans filing for unemployment, it’s clear we must start working to revive our economy and get the American people back to work safely.
— Senator Kelly Loeffler (@SenatorLoeffler) April 16, 2020
The senator, nevertheless, wrote to her followers on Twitter:
“Thank you, @realDonaldTrump for appointing me to your task force on re-opening America safely in the wake of #COVID19. With 22 million Americans filing for unemployment, it’s clear we must start working to revive our economy and get the American people back to work safely.”
Just last week, she also made the headlines when it was alleged that she had sold off millions in personal stock holdings after attending a closed-door Senate Health Committee briefing in earlier in January, leading to accusations that she had conducted illegal insider trading.
She herself has rubbished the claims, saying that her investment portfolio followed decisions that “are made by multiple third-party advisors without my or my husband’s knowledge or involvement”. Not that it has helped improve her reputation as the stocks crashed following her move, and other investment actions took place later on.
That apart, she will now be part of a bipartisan group of lawmakers assembled quickly by the US president to advise him on how best to “reopen America” in the wake of the Covid-19 pandemic.
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