As the cryptocurrency market seeks to surpass the $ 2 trillion valuation, the bitcoin rate has surged to $ 47,000. Over the past three months, the price of BTC crossed this mark for the first time.
As it turns out, Bitcoin very closely follows the Stock-to-Flow (S2F) model developed by the popular cryptanalyst PlanB.
In June 2021, when BTC was trading below $ 35,000, Plan B gave its forecast for the months following August. According to it, by the end of December 2021 the BTC price will reach $ 135,000.
✅ Aug > $47K https://t.co/tj6SSwSzKR
— PlanB (@100trillionUSD) August 13, 2021
Along with the current spike in prices, Bitcoin has also seen significant improvements in network metrics.
In particular, bitcoin miners continued to accumulate – over the past month, the balance of miners has been constantly growing, which is a good sign. This means that they expect further growth in the price of bitcoin, so they do not want to take profits now.
Network data analyst Santiment reports that Bitcoin supply on exchanges has dropped to a two-week low. This is an encouraging sign suggesting that a large amount of BTC will go to cold wallets.
Glassnode made a similar observation regarding bitcoin outflows:
“Bitcoin continued to leave the exchanges in August at a rate of 75 to 100 thousand per month. This churn rate is similar to the period between 2020 and the first quarter of 2021, when large savings and GBTC arbitrage trading prevailed. ”
#Bitcoin has continued to flow out of exchanges in August at a rate between 75k and 100k per month.
This magnitude of outflow is similar to the period between 2020 and Q1 2021, where heavy accumulation, and the GBTC arbitrage trade dominated.
Live Chart https://t.co/q9xOEQdXk4 pic.twitter.com/UHF6oqhRPL
— glassnode (@glassnode) August 12, 2021
At the moment, all indicators speak of the strength of Bitcoin, which allows us to hope for growth to the level of $ 50,000. It is worth noting that as a result of the recent rally in altcoins, the dominance of Bitcoin in the crypto space has slightly decreased to 44.9%.