Bitcoin continues to fall and the community loses confidence to reach $ 100,000

Key facts:
  • The price of BTC fell 13% this week, soaring pessimism in the market.

  • Willy Woo believes that, in the short term, the main cryptocurrency will begin to pick up.

The price of bitcoin (BTC) continues in free fall, even threatening to break the threshold of $ 30,000 during the early hours of this Saturday, June 26. The decline of 13% in the last week has spread pessimism on the community, which is making it clear that it loses confidence in the famous model Stock To Flow (S2F), which the market analyst Plan B used to project the price of the cryptocurrency.

Although the price of the main cryptocurrency has lost more than 50% of its value since it traded on the order of $ 63,000 in April, “Plan B” estimates remain bullish by indicating that bitcoin can close the year 2021 above $ 100,000.

However, the researcher’s Twitter followers say they are ceasing to believe his predictions. The analyst himself, in his account, invited his almost 600,000 followers to indicate what is the price they expect by the end of the year. That was when more than 40% of the 120,000 who participated in the survey, rule out the price reaching USD 100,000.

The S2F model is based on the theory that bitcoin is a store of value like gold or silver that hold its value in the long term due to its relative scarcity. So, under this principle, Plan B correlates the stock or the amount of assets currently available, with the flow or the amount of bitcoins mined annually, to project where the price of the cryptocurrency can go.

Although many believe it will break this year, since 2012 the price of bitcoin has met the parameters set in the model Stock To Flow, as can be seen in the following graph. It projects that by the end of the year BTC could reach USD 91,000. However, this fall represents one of the largest deviations of the model towards undervaluation, since 2013.

In any case, Plan B he believes that the price for December will be above that estimate, because a couple of days ago he tweeted that, in its worst case scenario, for this year BTC will be in the order of USD 47,000 by August, 63,000 by October and 98,000 by the end of the year.

Willy Woo is also optimistic about what is to come for bitcoin

Willy Woo is another one of the analysts who are optimistic about a possible short-term rebound in the price of bitcoin. Just a few hours ago explained on Twitter why you think the cryptocurrency will be replenished this year.

The beginning of 2021 was defined by bitcoin’s incorporation of corporate treasuries, traditional funds and high net worth. The second half of 2021 is being defined by joining nations and millions of smallholders. The latter is what bitcoin was created for.

Willy Woo, cryptocurrency market analyst.

Woo he thinks, if at least the 4.5 million adults living in El Salvador adopt bitcoin, then this will be an immediate boost of 2.5% of the total number of users the network currently has.

He is convinced that, after all, bitcoin will win, for while some countries or places believe they should eradicate it, others will eventually continue to emerge where they will adopt it as part of their policy to raise capital.

What Woo is referring to is the impact the industry has recently received in the wake of China’s intensified crackdown on bitcoin, as Crypto News has been reporting. Meanwhile, the expectation grows about the countries that will follow the route of El Salvador with its Bitcoin Law.

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