According to Glassnode, over the past 24 hours, Bitcoin’s volume that mining pools transferred to trading platforms has increased sharply to almost 280%. Meanwhile, Bitcoin price has dropped slightly from a new historic high of $ 15,492. At press time, Bitcoin is trading around $ 15,726, up nearly 4% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Miners are withdrawing cash, pushing Bitcoin price down
According to Glassnode, over the past 24 hours, miners have sent more Bitcoin to exchanges than before. BTC’s volume transferred from miners to exchanges has increased sharply and is now up 271.6%, a total of 25,101 BTC after 6,754 BTC.
Current value is 25.101 BTC (up 271.6% from 6.754 BTC)
— glassnode alerts (@glassnodealerts) November 9, 2020
The reason is probably that they are looking to fix their profits and withdraw cash. While this was happening, Bitcoin fell slightly from a recently recorded high of $ 15,492 (the highest weekly close in over two years) to $ 15,215, according to data from CoinMarketCap.
On November 6, Bitcoin soared $ 15,000 and soared to $ 15,829 – a high not seen since the beginning of 2018 just before volatility.
Why $ 100,000+, and why 2021?
According to PlanB, who created the stock-to-flow (S2F) model, Bitcoin price will most likely reach $ 100,000, and BTC may even reach $ 100,000 to $ 288,000 by December. 2021.
People ask if I still believe in my model. To be clear: I have no doubt whatsoever that #bitcoin S2FX is correct and #bitcoin will tap $100K-288K before Dec2021. In fact I have new data that confirms the supply shortage is real. IMO 2021 will be spectacular. Not financial advice! pic.twitter.com/GNSxLIt7NG
— PlanB (@100trillionUSD) November 8, 2020
Bitcoin will have to rise around 545% from its current price to surpass more than $ 100,000. At that price point, the BTC market cap would reach close to $ 2,000 billion. And clearly, this belief comes from the fact that PlanB still believes strongly in the stock-to-flow (S2F) model.
Bitcoin S2F Model | Source: PlanB
The theory behind S2F is when the Bitcoin supply decreases over time, and inflation will continue to increase. These two factors could theoretically amplify Bitcoin’s uptrend.
Based on Bitcoin’s supply curve and halving cycles, S2F gives BTC an expected $ 5.5 trillion valuation. The model predicts Bitcoin will reach a multi-trillion-dollar valuation by 2024. 2021 is particularly important for Bitcoin as it follows the highly anticipated block reward halving in May. 2020.
The model indicated:
“S2FX model estimates a market value of the next BTC phase/cluster (BTC S2F will be 56 in 2020–2024) of $5.5T. This translates into a BTC price (given 19M BTC in 2020–2024) of $288K.”
While the total Bitcoin supply is 21 million, there is a large amount of BTC that have been lost or inactive that are no longer inaccessible.
Analyst Will Woo said:
Total supply of Bitcoin will not be 21m, it’ll be around 17m as many coins died in the fight for being acknowledged as something valuable in the early days.
This means 0.002 BTC per person on the planet.
— Willy Woo (@woonomic) October 28, 2020
Therefore, PlanB expects Bitcoin to follow the S2F pattern as supply becomes available and the amount of new Bitcoin mined gradually decreases over time.
You can see the Bitcoin price here.
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