Bitcoin (BTC) is heading „on time like clockwork“ towards $288,000 and above, while the problems of fiat coins are growing and European inflation is turning into negative territory.
In a September 1st tweet, PlanB, inventor of the Stock-to-Flow (S2F) model family, said that during the month of August the BTC/USD pair behaved exactly as expected.
BTC price: another month, another red dot
Analyzing BTC’s monthly closing price since the May halving, PlanB observed that each of them corresponded to its model’s forecasts.
He summed it up by saying: „Bitcoin… as punctual as clockwork“.
BTC has placed its fourth „red dot“ on the S2F chart since May. If performance after the two previous halving is to be kept as an indication, it should be a few months before a price spike occurs.
According to the S2FX model, the current halving cycle, which like the others Bitcoin System lasts four years, should bring the price of Bitcoin to $288,000. The absolute maximum value, according to PlanB, could be even more than double that.
The BTC/USD pair tried once again on Tuesday to break the resistance threshold of $12,000, but had to stop at $11,950 before the opening of trading on Wall Street.
Winklevoss: the American dollar „is becoming a shitcoin“
The recovery of Bitcoin comes along with further bad news from the central banks. This time Europe is in the foreground, as the European Central Bank (ECB) has revealed that inflation in the Eurozone has turned into negative territory for the first time since 2016.
As market commentator Holger Zschaepitz noted, this news comes despite a huge injection of liquidity from the ECB. Therefore, injecting more money has led to deflation.
Zschaepitz tweeted: „AHIA! It seems that the ECB has not been able to stimulate inflation by printing money“.
The United States is still suffering from last week’s Fed announcement: allowing inflation to temporarily rise above 2%.
Both Bitcoin and gold supporters were satisfied with the impact of the decision on prices, but called on others to abandon the dollar.
This Tuesday, Tyler Winklevoss, co-founder of Gemini and well-known entrepreneur, tweeted:
„The American dollar is becoming a shitcoin faster than anyone could have imagined. Bitcoin is the key to salvation“.
As reported by Cointelegraph, a further negative signal for the dollar comes from Warren Buffett: the famous investor bought gold and then Japanese assets worth 6 billion dollars, in a move that seems to signal a reduction in his exposure to the American currency.