Bitcoin’s Valuation Model Hints At $500K Cycle Average, Analyst Says
Bitcoin is trading near $67,300, well off its recent high of $74,000. One well-known analyst says that dip barely matters — he’s looking at a cycle average closer to half a million dollars.
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What’s Weighing On Bitcoin Now
Several outside pressures have contributed to Bitcoin’s recent pullback. Geopolitical tensions and shifting inflows into spot Bitcoin exchange-traded funds — which won US regulatory approval in early 2024 — have added to short-term volatility.
Data shows that ETF inflows, which helped push Bitcoin to record highs earlier this year, have been inconsistent in recent months.
Reports note that many analysts view the current period as a consolidation phase following the strong rally that carried Bitcoin above $72,000. Whether that consolidation leads to a renewed push higher — or signals a longer plateau — remains an open question.
PlanB’s $500,000 average would require Bitcoin to climb more than seven times its current price before the cycle ends. That’s a large number. But in a market that went from under $20,000 to over $73,000 in roughly 18 months, some investors say stranger things have happened.
Featured image from Free3D.com, chart from TradingView
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