In a significant development for the cryptocurrency space, the Bitcoin bull market officially kicked off on March 1, according to PlanB, a pseudonymous quantitative analyst renowned for creating the controversial stock-to-flow (S2F) model for Bitcoin price prediction.
“Bull market has started. If history is any guide, we will see ~10 months of face-melting [Fear of Missing Out] FOMO: extreme price pumps combined with multiple -30% drops.”
Tweet shared by PlanB, calling the start of the bull market
This prediction comes on the heels of Bitcoin breaching $60,000 just two days earlier, reaching $62,472 in the last 24 hours.
The end of the Bitcoin accumulation phase and the conclusion of easy buying opportunities are also indicated by PlanB’s reference to the S2F chart in a recent post on X (formerly Twitter). Despite S2F gaining popularity during the 2021 bull run, criticisms have emerged, with Ethereum co-founder Vitalik Buterin denouncing it for providing investors with a “false sense of certainty.”
PlanB’s forecast aligns with other analysts, such as Vetle Lunde of K33 Research, who notes that post-halving periods typically witness consolidation followed by subsequent rallies. Lunde emphasizes the 150-400 days post-halving as a favorable timeframe for market entry.
In addition to halving dynamics, the recent approval of spot Bitcoin exchange-traded funds (ETFs) has bolstered investor interest and contributed to Bitcoin’s price surge. Despite a 3% correction following Grayscale’s Bitcoin Trust (GBTC) ETF sell-off, Bitcoin prices have surged over 22% in the past week.
Notably, the nine new spot Bitcoin ETFs, excluding Grayscale’s ETF, recorded over $2 billion in combined daily volume on February 28. This surge in demand, marked by passive, price-agnostic investment, is unprecedented in Bitcoin’s history and is predicted to drive the cryptocurrency to new all-time highs, according to a research report by Bitfinex Analysts.
The report forecasts a conservative price target of $100,000-$120,000 by Q4 2024, anticipating the cycle peak in 2025 for the total crypto market capitalization. As the Bitcoin bull market gains momentum, these developments underscore a bullish outlook for the cryptocurrency in the coming months.
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