The creator of the Bitcoin Stock-to-Flow (S2F) model – PlanB – admitted that he recently made his third BTC investment. At the time of purchase, the main cryptocurrency was around $20,000.
Due to its significant price depreciation compared to the all-time high of $69,000 in November 2021, many people proclaimed the death of bitcoin in recent months. However, PlanB revealed that each of its crypto investments was at a time when pessimism prevailed.
PlanB increases exposure to BTC
In a recent post on Twitter, the anonymous user who operates under the pseudonym PlanB revealed the timeline of his bitcoin purchases over the years.
It first entered the ecosystem in 2015, when the main digital asset was trading at around $400. Three years later, he bought more when BTC was around $4,000. His third investment was recently, when the coin was worth $20,000.
My first bitcoin investment was in 2015 at ~$400 (yellow circle). Most people said bitcoin was dead.
My second investment was in 2018 at ~$4000 when I posted the S2F model. Most people said bitcoin was dead.
My third investment is now ~$20,000. Most people say bitcoin is dead. pic.twitter.com/oUWppoJgxo
— PlanB (@100trillionUSD) October 2, 2022
Interestingly, PlanB noted that the number of Google queries for “Bitcoin is dead” has been at a very high level every time he made a purchase.
The aforementioned narrative becomes very popular in times of market decline. The phrase soared to an all-time high in June this year, when bitcoin fell to $17,500 (an 18-month low).
It is worth noting that the asset has been declared “dead” more than 450 times during its existence. Despite its previous price collapses, the negative tone from prominent individuals and the devastating macro environment, it has always managed to overcome the problems and currently stands as an asset with a market capitalization of more than $360 billion.
This number may not be as impressive as in November 2021, when the estimated value of BTC exceeded one trillion dollars, but it is still more than the market capitalization of leading corporations such as Meta (formerly known as Facebook), Walmart , Nestle and more. .
PlanB’s STF model and BTC’s possible bullish future
The analyst who goes by the Twitter handle PlanB is most famous for developing the bitcoin stock-to-flow (S2F) model. It provides a plausible future valuation of bitcoins in USD based on its circulating supply and the amount of coins mined each year.
In early 2022, PlanB said that analysis indicates that the cryptocurrency will reach $100,000 by the end of 2023, stating:
“I would be really surprised if bitcoin has a lower market value than gold after the next halving when BTC S2F 100+.”
It is worth saying that PlanB’s forecasts have not always been correct. In April of this year, he predicted that BTC is unlikely to drop below $24,500 ever again and that it is possible to hit the $100,000 mark in 2022.
In reality, however, the asset has hovered around $20,000 for the past few months, while reaching the expected price before the end of the year seems quite unlikely.
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