Bitcoin (BTC) is heading for $ 288,000 and more “like clockwork” as fiat currency problems mount and European inflation turns negative.
In one Tweet September 1st Plan B, Developer of the Bitcoin Stock-to-Flow (S2F) pricing model familysaid the BTC / USD pair behaved exactly as expected in August.
BTC price: another month, another “red dot”
When listing the monthly closing price since the block halving in May PlanB found that each matched the predictions of its S2F cross-asset model.
“Bitcoin … like clockwork”summarized.
Bitcoin has placed its fourth so-called “red point” on the S2F chart since May. Based on performance after the previous two halves, That leaves only a few months before a big price hike takes place.
According to S2FX, the current halving cycle, which like the others lasts four years, should generate a bitcoin price centroid of $ 288,000. The peak, PlanB explained earlier, could be more than twice as high.
BTC / USD tried again Tuesday to break out of the USD 12,000 resistance, which was at USD 11,950 before trading on Wall Street began.
Bitcoin S2FX model from September 1, 2020. Source: PlanB / Twitter
Winklevoss: The US dollar “is becoming a shitty coin”
Bitcoin’s strength lies in the recent bad news from central banks. This time Europe was the focus, how the European Central Bank (ECB) revealed that inflation in the euro zone had fallen into negative territory for the first time since 2016.
As the market commentator emphasized Holger Zschaepitzoccurs despite the enormous liquidity surge from the ECB. The net result of more money was deflation.
“AWAY! It seems that the ECB did not stimulate inflation by printing money”Zschaepitz tweeted.
Euro area consumer price index (CPI) inflation and ECB balance sheet chart. Source: Holger Zschaepitz / Twitter
In the United States, the dust has continued to settle since the Federal Reserve announced last week regarding inflation. that it may temporarily rise above 2%.
Both Bitcoin and gold proponents were pleased with the impact the policy had on price. But they urged others to drop their exposure to US dollars.
On Tuesday the co-founder and entrepreneur of Gemini Exchange, Tyler Winklevoss, The tone continued.
“The US dollar is turning into a shitty coin faster than you ever imagined. Bitcoin is the key to salvation “he told Twitter followers.
As Cointelegraph reported, Warren Buffett, who bought gold and then $ 6 billion worth of Japanese assets, heightened the sense of doom against the USD.