A known Bitcoiner has taken to X, formerly Twitter, to make one of the boldest Bitcoin price predictions. Interestingly, the prominent figure is not forecasting a price target, rather, he is certain that Bitcoin will no longer trade below a certain price mark.
In a post that has since sparked up a debate amongst community members, Plan B, the creator of the Bitcoin Stock-to-Flow model, shared the reasoning behind his sentiment.
His bullish sentiments are tied to a recent bullish feat recorded on the Bitcoin blockchain. With the hash rate being put into perspective, Bitcoin’s valuation topped $35,000 on the 26th of November.
Although short-term volatility and black swans could sway the asset’s market movement, the $/kWh-arbitrage fundamentals hint that the market will never see Bitcoin below $35,000, he wrote.
BREAKING: Bitcoin valuation based on difficulty (hashrate) increased to $35k yesterday. IMO this could mean that, apart from possible black swans or short term volatility, based on $/kWh-arbitrage fundamentals … BTC will never go below $35k ever again. pic.twitter.com/JPLkXieQAP
— PlanB (@100trillionUSD) November 27, 2023
Market players expressed their collective doubt after branding the prediction as unrealistic and risky.
When asked how his prediction connects to an arbitrage fundamental, he referenced miners’ position in the market. He maintains that investors purchase Bitcoin using USD, while miners buy Bitcoin using kilowatt-hour (kWh), there must be a relation/arbitrage.
It bears mentioning that prices have previously gone below the hashrate model value. As such, market players were curious to know why PlanB was convinced that the floor position had been reached.
He went on to state the observations fueling his convictions. He maintains that an arbitrage allows investors to purchase Bitcoin using USD while miners take the kWh route. As hashrate difficulty increases meteorically, he hints that other external factors might be at play.
Rephrasing his initial statement without backpedalling, PlanB explained that the bears would have a hard time penetrating through the fundamental floor built by the bulls. Should the bears be successful in their attempt to break the floor, Bitcoin might make a downward correction.
As he explained,
“Maybe what I want to say with this tweet is not that there is zero possibility that BTC dips below $35k in case of some black swan event, but that there is a fundamental floor that is not easily broken, especially long-term. This insight gives me confidence, I wanted to share that.”
Meanwhile, at report time, Bitcoin is valued at $41,219. The market started with bulls asserting dominance over the market before selling pressure intensified.
