Bitcoin’s bullish hype fades, but analyst says PlanB’s stock-to-flow model is still relevant

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Bitcoin price has traded sideways since hitting a 2023 high at $31,800, but analysts believe that the countdown to the next halving means a powerful price breakout is in the making.

shows that Bitcoin’s price action in the first half of 2023 was mainly dominated by short-term investors.

The metric met with resistance as its reading surpassed the 90% market with Bitcoin’s break above $31,000, suggesting that almost all short-term holders are in profit. A correction in BTC is required in the short-term to reset this metric for further gains. PlanB’s Stock-to-Flow model shows how Bitcoin’s halving affects its price. The basis of the theory is that an asset's price grows as it becomes scarce.

 

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BTC soared to a new yearly high of over $31,800 on July 13, driven by optimism surrounding the potential approval of exchange-traded funds (ETFs) in the United States and Ripple’s landmark legal victory in its case against the U.S.

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