Bitcoin price has risen by 159% this year already. The hash rate of the network has also hit its all-time high as LTC did earlier in the year. Does this mean that BTC will follow Litecoin’s pattern?
Analysts disagree with the analogy. They do not believe that Bitcoin halving will trigger a price drop. The halving is 259 days away and is the third halving for the coin. This halving will cut the rewards for miners down from 12.5 to 6.25. The event is expected to push BTC price to the moon.
One top analyst known as PlanB is a proponent of this school of thought. He believes that BTC will not follow LTC’s model and lose value after the halving. “the logic is flawed” he says.
PlanB also believes that Litecoin price has no significant relationship with stock to flow. BTC price stock to flow relation is stronger he says.
Still, there is no reason why LTC doesn’t have a relationship with the S2F model. It could have been caused by so many reasons from liquidity, developers, or on/off ramps.
Going by this model, Bitcoin price could go beyond $1 million. PlanB also believes that a new bull run may have been started. He shared some insight earlier in the month about how there is a downward difficulty adjustment after each all-time high is hit. When it resets to 100% a new bull run starts.