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This price model hints BTC could explode to $1M after 2024 halving
July 29, 2023
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(Dinarian Note: Everyone is expecting BTC to dive from here, expect the unexpected! We could see shorts get wiped out once again before dropping further to the sub 15k levels... Once we hit sub 15k, strap in! It will be an EPIC ride up like no other, and will make the last bull run look like childs play, I fully expect THETA for instance to reach over $30 a Token. Not financial advice, but you should probably listen anyway!)

Although Bitcoin (BTC) is currently experiencing a sideways trading pattern, the majority of the crypto sector maintains confidence that the asset is poised for significant price growth in the future. Indeed, the upcoming halving event in 2024 is viewed as a possible catalyst that could elevate the maiden crypto‘s value.

In this regard, crypto trading analyst PlanB discussed several pricing models in a YouTube video on July 28, which could offer room for Bitcoin to grow toward the $1 million level. He highlighted that historically, Bitcoin has recorded price jumps after previous halving events, focusing on the Stock-to-Flow (S2F) model.

PlanB elaborated on the significance of the model and its relation to Bitcoin’s scarcity and price. He emphasized that the S2F model has demonstrated a notable correlation between Bitcoin’s scarcity and market value. 

The fundamental premise of the model lies in the notion that scarcity plays a crucial role in determining Bitcoin’s price, and it quantifies this scarcity using the Stock-to-flow ratio.

According to PlanB, the model shows that the price of Bitcoin tends to surge in response to the increasing scarcity caused by the halving events, a claim supported by historical data from previous halvings.

“You see the 2012 halving, and the price jumps right after that. 2016 halving price jumps right after and same in 2020. The next halving course will be in 2024 so we see the model already going up”.

Bitcoin valuation in 2024

Notably, according to the model, Bitcoin should be trading in the $60,000 zone, which could lead to emotional reactions among investors. In the short term, the model projects that Bitcoin’s main support base towards $1 million might be the $100,000 level, which it deems achievable by 2024.

Interestingly, the $100,000 price projection aligns with a previous Finbold report in which Google’s generative artificial intelligence tool Bard offered the same prediction. Bard cited PlanB’s S2F model, which also places Bitcoin at $100,000 in 2024.

Simultaneously, technical indicators indicate that Bitcoin is mimicking previous pre-halving periods that preceded a massive bullish price rally for the maiden cryptocurrency. Generally, the halving event is considered a major milestone in Bitcoin’s path towards reaching the next all-time high price valuation.

Bitcoin price analysis

At the time of writing, Bitcoin was trading at $29,322, with minor gains of less than 0.2% in the last 24 hours, extending the asset’s stay below the $30,000 mark.

Elsewhere, Bitcoin’s technical analysis, as received from TradingView, is mainly bearish. According to a summary of the one-day gauges, Bitcoin is showing a ‘sell’ sentiment at 11, while moving averages are also indicating ‘sell’ at 9. Oscillators are recommending ‘neutral’ at 8.

Indeed, Bitcoin has remained under pressure, especially after failing to break above the $30,000 zone, a level considered crucial for a new all-time high.

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

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This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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