Renowned crypto analyst PlanB has posted a tweet on Twitter recently, stating that the Bitcoin halving in 2024 will cause the S2F model ratio to double, meaning that after the halving, Bitcoin will become scarcer and may become rarer than gold in the future.
Many people, however, do not agree with this statement. Some argue that Bitcoin does not work like other assets, making the S2F model useless for predicting Bitcoin prices. They believe that past predictions that turned out to be correct may have been mere coincidences.
However, PlanB clarified in a follow-up tweet that the profits of Bitcoin after the halving in 2012, 2016, and 2020 were not random events or coincidences but rather were the result of the fundamental factors of Bitcoin, including its limited supply of 21 million coins, the decrease in supply over time, and the halving that occurs every four years.
PlanB believes that these fundamental factors are key determinants of Bitcoin’s price, and as such, the S2F model can be used to predict Bitcoin prices in the future. He predicts that after the 2024 halving, the price of Bitcoin according to the S2F model will be around $60,000, and Bitcoin will always pump after halving, just like what happened in 2012, 2016, and 2020.
Moreover, PlanB revealed a small trading tip called the “S2F trading rule,” which suggests that investors should buy Bitcoin six months before the halving and sell it in the 18 months that follow. This tip is based on the historical data and the S2F model, which indicate that Bitcoin’s price will rise in the months leading up to the halving and continue to rise for some time after the event.
In conclusion, while some people may disagree with PlanB’s predictions about Bitcoin’s future price and scarcity, his insights and trading tips based on the S2F model can be useful for those who want to invest in Bitcoin or other cryptocurrencies. As always, it is essential to do your research and consider various factors before making any investment decisions.
Source: https://azcoinnews.com/planb-advises-buying-bitcoin-6-months-before-halving-and-selling-for-profit-18-months-after.html
