When the Litecoin (LTC) rate has not demonstrated a doubling as a result of the halving, LTC holders had a great disappointment. Since then, there has been much speculation that Bitcoin would face the same prospect. However, a Twitter user under the nickname PlanB claims the price models of digital assets have important variations.
Some people think that because litecoin didn't jump on ltc halving, btc halving will also be irrelevant for #bitcoin. That logic is flawed. LTC price doesn't have a significant relationship with stock to flow, so halvings are indeed irrelevant. BTC price-s2f relation is strong 🚀 https://t.co/5Wx7vHLvUd
— PlanB (@100trillionUSD) August 31, 2019
In his opinion, halving is irrelevant to the digital silver price, but the main crypto responds to gain.
“Some people think that because Litecoin didn’t jump on LTC halving, BTC halving will also be irrelevant for Bitcoin. That logic is flawed,” he posts.
By the way, in June, he predicted the $65 rate of digital silver when the event took place. On the halving, Litecoin soared to $ 103 but then keep suffering a double drop during a month. At the same time, the difficulty of Litecoin fell more.
However, the uncertainty in the market is raising fear for most cryptocurrency owners. Correctly, as you know, cryptocurrencies are a risky asset and if you want to make a tidy profit, your activity requires nerves of steel.
At the same time, most of us have witnessed a colossal increase in BTC price to $ 20,000 and the subsequent disastrous drop by 90% in a few months.
What Does Halving Heralds To Bitcoin Hodlers
Everybody is waiting for the price rise correlated with halving the reward for the BTC block. Earlier, the owners of LTC were waiting for this. Unfortunately, the holders were not satisfied with the result, however, in the case of Bitcoin, analysts ensure more pleasant results.
And here, an analyst under the nickname PlanB demonstrated a model that once again confirms the fantastic growth of the first cryptocurrency on the eve of the event.
— PlanB (@100trillionUSD) September 1, 2019
Therefore, judging on the tweet, the digital gold will increase to more than $55,000 by May 2020.
“The original model ($ 55k / R2 95% / btc = 0.4 * sf ^ 3) was made with 111 monthly data points. The other model ($ 100k / R2 99.5% / btc = exp (-1.84) * sf ^ 3.4 ) uses only 4 pre-2012 halving Oct data points and is focused on out-of-sample performance,” he posts.
This model looks pretty convincing. Although you should not forget that past results do not guarantee future results in the crypto market.
But not analytics only predicts a bright future of Bitcoin. However, co-founder of the Hong Kong-based investment company Kenetic Capital, Cihan Chu, believes that bitcoin will cost about 30,000 and interest in cryptocurrencies will continue to grow.
Halving tends to increase Bitcoin prices in the long run. Before the previous bitcoin halving, in 2016 there was a slow but steady increase in the price of Bitcoin for about a year.
Therefore, people’s attitude towards Bitcoin has changed is a fact. Consequently, at the moment, users are more concerned about the future of BTC than its past. At the same time, the asset has reached a sufficient reputation.