Bitcoin has dropped significantly in price over the past few days. Bitcoin price is down 8.75% in the past 24 hours, currently trading at around $35,600. However, this is no reason to panic, according to Plan B, creator of the moniker of the stock-to-flow (S2F) Bitcoin model. Plan B has even called for market participants to accept volatility as over the long term, Bitcoin has proven to be a rewarding investment.
Plan B assures that the Bitcoin market will recover again
In a recent tweet, the creator of the Bitcoin S2F model reiterated his optimism for Bitcoin and his confidence in the S2F model. Using its investment journey as a case study, Plan B urges market participants to take a long-term view of Bitcoin and ignore the current drop.
He recounted that he bought his first Bitcoin in 2016 for $400. In 2019, he published an S2F model when Bitcoin was at $4,000. Since then, the S2F model has tracked Bitcoin market performance accurately within 2 standard deviation bands, even so far as the price has dipped below $40,000. From this historical price performance of Bitcoin, Plan B states that it is inevitable that the price of Bitcoin will increase by another zero in the next few years.
… Some worries about the current drop, but I’m pretty sure Bitcoin will hit another zero in the next few years, he say.
This is just his latest reminder to market participants to hold onto their Bitcoin as the bearish trend will reverse soon. According to another recent tweet, he claims that the bull run will be epic as Bitcoin bulls regain control.
There are still many fears that the crypto market may collapse further
The market performance of Bitcoin is the cause of a lot of concerns in the crypto market. The latest Fear and Greed Index puts Bitcoin market sentiment in the “extreme fear” zone. One reason for this is that the current Bitcoin price of $35,600 was last seen last July when the market was struggling to recover from the crypto market crash that began in May.
Liquidity in the futures market also increased. Over the past 24 hours, the crypto market has seen over $1 billion worth of liquidations in days from Coinglass. Bitcoin futures liquidity hits $348 million in the timeframe.
The underperforming market has been the background for much of the bearish sentiment. According to Cryptowhale, Bitcoin price will never again reach its current all-time high of $69,000 but will drop below $10,000 by 2022. This view is shared by the gold mogul and Bitcoin skeptic. Peter Schiff.
Despite that, Plan B isn’t the only Bitcoin bull run urging investors to hold on to some level of stability for the time being. In a survey conducted by the Dutch analyst on Twitter, the majority (48%) of participants revealed that the next bullish catalyst for Bitcoin will be the approval of a spot Bitcoin ETF by SEC. Prominent online analyst, Will Clemente, said that in his view, the market is likely to turn around on news of another El Salvador, or the Fed reverses its current hawkish stance.