- Plan B highlighted Bitcoin’s “worst-case scenario for 2021” following the recent plunge to be $135,000 by December.
- The crypto analyst set his highest Bitcoin price target at $450,000.
The creator of the popular stock-to-flow model, Plan B, recently unveiled his worst-case scenario for 2021 on the Bitcoin price. Plan B added the recent prediction is not a base case or a best-case and that his prediction is still base on the S2FX.
Plan B highlights the least price target on Bitcoin
In a recent tweet, Plan B claimed the lowest price BTC will trade in August is $47,000. The analyst said the crypto would trade at a minimum price of $43,000 in September and $63,000 in October. In addition, Plan B added that his least price target on Bitcoin for November is $98,000 and for December, $135,000.
Bitcoin is below $34K, triggered by Elon Musk's energy FUD and China's mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (@100trillionUSD) June 20, 2021
In a separate tweet, Plan B mentioned the price difference between August and September. According to his worst-case scenario, Bitcoin will reduce by $4,000 in September from $47,000 in August. He said there would be a “small dip in Sept fundamentals.”
Plan B’s tweet generated several reactions from members of the crypto community, pushing the analyst to state his best-case scenario for Bitcoin in December. He placed a $450,000 price target on BTC in December.
Plan B said that there is a “more fundamental reason” to the cause of BTC’s decline in June. He noted that Bitcoin may also see some weaknesses in July. However, he did not mention the additional fundamental reasons for the Bitcoin weakness.
Plan B stated that Elon Musk’s comment on BTC energy consumption and China’s mining crackdown led to the recent Bitcoin crash. The Tesla CEO said BTC’s energy usage is harmful to the environment. This led to a significant loss in the price of Bitcoin. Since Musk’s statement, the value of Bitcoin has been on a steady decline.
China Bitcoin crackdown triggers current BTC crash
After Musk’s comment, China has initiated a wide Bitcoin mining crackdown across the country. The major BTC mining regions in Qinghai and Xinjiang were also affected as China continues its Bitcoin crackdown.
More recently, Bitcoin mining operations were shut down in Southwest China’s Sichuan Province on the 20th of June. This came after local authorities issued a ban on crypto mining in the area. More than 90 percent of Bitcoin mining businesses in China have been shut down amid the ongoing nationwide crackdown against crypto mining.
#China logistics firm in Guangzhou confirms to @CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37! #cryptocurrencies pic.twitter.com/8yUjZjhpkk
— Eunice Yoon (@onlyyoontv) June 21, 2021
Related: 90% of China’s Bitcoin mining has been shut down after the latest move in Sichuan: Report
A Sichuan-based industry insider comments that the exit window is closing, and miners are exploring other countries to transfer their mining devices. The insider added that a huge number of miners in China have also seen significant losses due to the crackdown.
Shenzhen-based blockchain company BankLedger CEO, Shentu Qingchun, said:
We had hoped that Sichuan would be an exception during the clampdown as there is an electricity glut there in the rainy season. But Chinese regulators are now taking a uniform approach, which would overhaul and rein in the booming Bitcoin mining industry in China.
