According to PlanB, a pseudonymous quantitative analyst known for creating the controversial stock-to-flow (S2F) model for Bitcoin’s price, the Bitcoin bull market officially began on March 1. PlanB made this prediction in reference to the S2F chart, stating that the accumulation phase for Bitcoin has ended along with the easy buying opportunities. This announcement comes just two days after Bitcoin broke the $60,000 mark for the first time in over two years. However, it’s worth noting that the S2F model has its limitations and has been criticized by Ethereum co-founder Vitalik Buterin for providing investors with a false sense of certainty.
PlanB’s predictions align with the expectations of other analysts, such as Vetle Lunde from K33 Research, who stated that Bitcoin typically consolidates after halving but experiences a rally in the following months. Lunde also noted that the recently approved spot Bitcoin exchange-traded funds (ETFs) have contributed to the growing interest in Bitcoin and its subsequent price appreciation.
While Grayscale’s recently converted Grayscale Bitcoin Trust ETF caused a 3% correction in Bitcoin’s price after dumping $598.9 million worth of BTC on February 29, the overall trend has been positive, with Bitcoin’s price rising over 22% in the past week.
In addition to Grayscale’s ETF, the nine new spot Bitcoin ETFs have seen significant success, recording over $2 billion in combined daily volume for the second consecutive day on February 28. These new ETFs have accounted for 75% of new Bitcoin investments since their launch on January 11, according to a report by CryptoQuant.
The introduction of these ETFs has brought passive, price-agnostic demand to Bitcoin for the first time in its history. As a result, Bitfinex Analysts predict that Bitcoin will reach new all-time highs before the end of 2024.
In related news, it was reported that the US government moved $922 million of seized Bitcoin after the BTC price broke the $60,000 mark.