Bloomberg analyst Eric Balchunas and PlanB, the creator of the stock-to-flow model, discussed an unexpected scenario in the market. While the approval of a Bitcoin ETF is predicted with a 90% probability by January 10th, the delay in the expected price increase to $100,000 is being observed. This inconsistency has led to questioning the factors that affect the current market situation among the cryptocurrency community.
Eric Balchunas reiterated that there is a 90% probability of approval for a spot Bitcoin ETF within the current cycle. This unchanging prediction shows a strong belief in regulatory outcomes. In contrast, PlanB, known for accurate Bitcoin predictions and the owner of the stock-to-flow model, says completely different things.
According to the analyst, there is no connection between Bitcoin ETF and the price increase of BTC. PlanB exhibits a skeptical attitude by pointing out an apparent inconsistency between expected and observed price movements. If the probability of ETF approval is 90% and the price is expected to reach $100,000 upon approval, then the current value of Bitcoin should be $90,000. The unexplained delay in the Bitcoin price has prompted a deeper examination of market dynamics and potential influencing factors.
The crypto community is closely monitoring two important issues at the moment. The first is the possibility of additional regulations or new applications. The second is the clarification of the distinction between cryptocurrencies and fiat creations. These factors are expected to play an important role in shaping the regulatory environment and thus impacting the trajectory of Bitcoin.
Experts are trying to solve the inconsistency between ETF approval probabilities and Bitcoin’s current price, and market participants are advised to carefully consider these uncertainties. The crypto world continues to be dynamic with factors that contribute to price movements beyond regulatory decisions. While the market awaits more precise information, being prepared for potential changes and conducting strategic observations are crucial for both investors and enthusiasts.