Bitcoin, the world’s most popular cryptocurrency, has experienced substantial growth in price performance this year. With the cryptocurrency currently up over 125% in 2023, many analysts, including the well-known crypto analyst PlanB, believe that this upward trend will continue. Based on his analysis of Bitcoin’s realized price, PlanB suggests that we might be nearing the end of Bitcoin below $40,000. In this article, we will examine his bullish sentiment and explore the factors that might contribute to a potential price surge for Bitcoin.
Bitcoin’s Realized Price Model
PlanB’s analysis of the realized price model, which calculates the average price of all Bitcoin currently in circulation, indicates that Bitcoin’s spot price is trading above the overall realized cost price, the 2-year realized price, and the 5-month realized price. This suggests that the market price of Bitcoin could be headed significantly higher in the near future. Some experts argue that the realized price is a better measure of Bitcoin’s value than the current market price. Therefore, according to PlanB, this could be a last chance opportunity to buy Bitcoin under $40,000.
At the time of writing, Bitcoin is trading at $37,687, with Glassnode reporting that the cryptocurrency’s realized price is around $21,000. While PlanB does not provide a definitive answer to whether there will be another opportunity to buy Bitcoin cheaply, he predicts that the cryptocurrency will likely trade between $100,000 to $1 million around the next halving cycle, which is expected to occur in April 2024. This aligns with a previous prediction made by PlanB, which puts Bitcoin’s price range between $32,000 to $66,000 during the next halving.
PlanB’s optimistic outlook for Bitcoin is supported by the overall sentiment surrounding the cryptocurrency. Bitcoin’s mainstream adoption is continuing to grow, especially as the industry awaits the approval of spot Bitcoin ETFs in the United States. CoinShare’s latest report reveals that Bitcoin has experienced significant year-to-date inflows of $1.238 billion into its digital asset investment products. This influx of institutional interest is further evident in the discount on Grayscale’s Bitcoin Trust, which has narrowed from -48% at the beginning of the year to -7.31%. Institutions buying into the trust amidst growing bullish momentum suggests a positive outlook for the price of Bitcoin.
Bitcoin’s strong price performance, coupled with its increasing mainstream adoption and institutional interest, indicates a bright future for the cryptocurrency. PlanB’s analysis of the realized price model suggests that the current spot price of Bitcoin may be undervalued, and a potential price surge could be imminent. While the future remains uncertain, many analysts and experts share PlanB’s bullish sentiment on Bitcoin. It is important for investors to stay updated on market trends and carefully assess the risks before making any investment decisions. As always, the cryptocurrency market can be volatile, and it is crucial to exercise caution and conduct thorough research when considering investing in Bitcoin or any other digital asset.
