Bitcoin (BTC) is headed for $288,000 and more „like clockwork“ as fiat currency problems increase and European inflation turns negative.
In a Sept. 1 tweet, PlanB, creator of the Bitcoin Stock-to-Flow (S2F) family of price models, said the BTC/USD pair had behaved exactly as expected in August.
BTC price: another month, another „red dot
In listing the monthly closing price since the May block halving, PlanB noted that each corresponded to the predictions of its S2F cross asset model.
„Bitcoin … like clockwork,“ he summarized.
Bitcoin has now put its fourth so-called „red dot“ on the S2F chart since May. According to the performance after the two previous halvings, that leaves only a few months before a big price hike.
According to S2FX, the current halving cycle, which like the others lasts four years, should produce a focal point of the Bitcoin System price of $288,000. The top end, PlanB explained earlier, could be more than double.
BTC/USD attempted to break the $12,000 resistance once again on Tuesday, held at $11,950 before markets began trading on Wall Street.
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Winklevoss: the US dollar „becomes a shitty currency“
Bitcoin’s strength comes amidst new bad news from central banks. This time, it was Europe that was in the spotlight, as the European Central Bank (ECB) revealed that inflation in the Eurozone had fallen into negative territory for the first time since 2016.
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This, as market commentator Holger Zschaepitz pointed out, is happening despite the ECB’s huge liquidity boost. The net result of more money has been deflation.
„OUCH! It seems that the ECB has not succeeded in stimulating inflation with the printing of money,“ tweets Zschaepitz.
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In the United States, the dust continues to settle since last week’s announcement by the Federal Reserve regarding inflation, which would be allowed to rise above 2% temporarily.
Both Bitcoin and gold advocates were pleased with the policy’s impact on the price, but called on others to abandon their exposure to the US dollar.
On Tuesday, Gemini Exchange co-founder and entrepreneur Tyler Winklevoss continued the tone.
„The U.S. dollar is becoming a shitty currency faster than we ever imagined. Bitcoin is the key to salvation,“ he told Twitter followers.
As Cointelegraph reported, Warren Buffett buying gold and then Japanese assets worth $6 billion added to the sense of doom over the USD.