Bitcoin Price Still on Track Amidst Sudden Downturn, Popular Analyst Says

  • Cryptocurrency analyst PlanB says bitcoin's price is on track according to the stock-to-flow (S2F) model despite the recent drop.
  • Bitcoin's mining difficulty increased 7 percent on Monday as miners prepare for May's halving event. 

Cryptocurrency analyst PlanB says bitcoin’s price is still on track after falling below $7,800 for the first time since January.

PlanB, who has gained widespread renown for his application of stock-to-flow (S2F) to bitcoin’s price, says that BTC is still following the model’s prediction despite falling below $7,800 on Monday. 

In a tweet published Mar. 8, the analyst said bitcoin’s sudden crash below $8000 had little impact upon the S2F model and that the price prediction was still on track.

Stock-to-flow provides a measure for predicting bitcoin’s price based upon its existing supply and the number of new coins entering circulation. Compared to precious metals such as gold, bitcoin’s S2F is more readily available, with newly mined coins entering the market at a fixed interval. 

While crypto market volatility reached a zenith late in the weekend, with the price of bitcoin crashing from above $9,000 to below $8,000, the S2F model prediction remained relatively stable. The 10-day and one-year S2F values averaged around $7,600, putting the prediction in the ballpark of bitcoin’s trading price. 

PlanB also reported that bitcoin’s difficulty was set to increase by 7 percent on Monday despite the drop in price. 

Mining difficulty provides an indicator for resources being devoted to bitcoin’s blockchain, with a higher difficulty corresponding to a more robust network. 

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Tim Draper Reveals He Owns Cryptocurrencies Other Than Bitcoin

Michael LaVere
  • American venture capitalist Tim Draper revealed owning more crypto-assets than just bitcoin.
  • Draper expects the value of bitcoin to increase as a result of the Federal Reserve's money-printing tactics. 

American venture capitalist and bitcoin bull Tim Draper claims to own “a lot of other cryptocurrencies” in addition to BTC. 

Speaking in a recent interview with British entrepreneur Rob Moore, Draper claimed that his diversified portfolio in crypto-assets had led to him being “surprisingly up” despite the economic impact of the coronavirus. 

He said, 

You know, when I played Monopoly, I never showed anybody how much money I had so so that you're not gonna get an up or down.

Draper also criticized the U.S. Federal Reserve’s money-printing response to the COVID-19 pandemic, which he said would lead to the dollar crashing in value. He claimed the impact of the falling dollar would drive more value into bitcoin. 

He said, 

There are only 21 million of them and they are going to be more and more valuable as you see governments have less and less.

Draper continued, saying his experience working as a venture capitalist and interviewing entrepreneurs has given him a “pretty good view” of what the future is going to look like. He expects governments to move towards decentralization in a competition for their own citizens. 

Featured Image Credit: Photo via Pixabay.com