PlanB – Bitcoin to Hit $135,000 in 2021 Under “worst case scenario”
Plan B, the developer of the renowned stock-to-flow methodology, has revealed his worst-case Bitcoin price forecast for 2021. Plan B clarified that his current projection is neither a start point nor a perfect scenario, and that it is still based on the S2FX.
Plan B said in a tweet yesterday that the lowest price BTC would trade for in August is $47,000. According to the expert, the cryptocurrency would trade at a minimal level of $43,000 in September and $63,000 in October. Plan B also stated that his lowest price prediction for Bitcoin in November is $98,000, while his highest price forecast is $135,000 for December.
Plan B noted the pricing disparity between August and September in a second tweet. Bitcoin would drop by $4,000 in September, as per his worst-case estimate, from $47,000 in August. He predicted a “little drop in September fundamentals.” Members of the crypto community reacted to Plan B’s post, prompting the analyst to outline his best outcome for Bitcoin in December.
In December, he set a price objective of $450,000 on BTC. The explanation of BTC’s drop in June, according to Plan B, is a “more basic issue.” He also predicted that Bitcoin will see some downturn in July.
He did not, nevertheless, address the other underlying causes for Bitcoin’s weakness. According to Plan B, the latest Bitcoin fall was caused by Elon Musk’s comments about BTC energy usage and China’s mining crackdown. BTC’s energy use, according to Tesla CEO Elon Musk, is damaging to the environment. The value of Bitcoin plummeted as a result of this. Bitcoin’s price has been steadily declining since Musk’s remark.
Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (@100trillionUSD) June 20, 2021
Following Musk’s remark, China has launched a nationwide ban on Bitcoin mining. As China’s Bitcoin crackdown intensifies, key BTC mining locations in Qinghai and Xinjiang have also been impacted. On the 20th of June, Bitcoin mining activities in Sichuan Province, southwest China, were shuttered. This happened after the local authority banned crypto mining in the region. During China’s continuing countrywide crackdown on cryptocurrency mining, over 90% of Bitcoin mining firms have been closed down.
According to a Sichuan-based industry insider, the escape opportunity is narrowing, and miners are looking into transferring their mining equipment to neighboring nations. According to the source, the raid has resulted in considerable losses for a large number of Chinese miners. Shentu Qingchun, CEO of Shenzhen-based blockchain firm BankLedger, said:
“We had hoped that Sichuan would be an exception during the clampdown as there is an electricity glut there in the rainy season. But Chinese regulators are now taking a uniform approach, which would overhaul and rein in the booming Bitcoin mining industry in China.”
#China logistics firm in Guangzhou confirms to @CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37! #cryptocurrencies pic.twitter.com/8yUjZjhpkk
— Eunice Yoon (@onlyyoontv) June 21, 2021