According to PlanB's Stock-to-Flow (S2F) model, Bitcoin is forecasted to reach approximately $500,000 between 2024 and 2028.

Bitcoin faced challenges in May as its upward trend seemed to peak following a positive quarter.

Despite recent market corrections, renowned crypto analyst PlanB believes that the average price of Bitcoin could surge to about $500,000 over the 2024-2028 period, based on his Stock-to-Flow model.

A Fresh Perspective on Bitcoin's Future

In a recent analysis, PlanB noted that Bitcoin closed April at $60,632, marking the end of a halving cycle. Although it dipped slightly below the S2F model's projected $55,000, the average price during the 2020-2024 halving cycle was $34,000. He observed that May heralds the beginning of a new countdown to the upcoming halving event.

According to the S2F model for 2024-2028, the predicted Bitcoin price stands at approximately $500,000. However, recent market movements paint a different picture as Bitcoin hit its lowest levels in months on May 1st, dropping to $56,555, the lowest point since February.

Bitcoin has faced challenges amidst its worst month since November 2022, struggling to recover and presently trading at $57,300 after a 7% decline in the past day. These losses have accumulated to nearly 20% for the month.

Signs Leading to the Downtrend

QCP Capital had forewarned about Bitcoin's recent drop, anticipating a volatile trading session due to various key factors. The launch of spot Bitcoin and Ether ETFs in Hong Kong resulted in volumes falling below expectations with $8.5 million for BTC and $2.5 million for ETH, indicating a lackluster start.

The crypto hedge fund highlighted that this could suggest a higher institutional interest in crypto within the US, while Asian interest leans towards private wealth and regional dominance. With Amazon earnings and Binance founder CZ's sentencing scheduled for the evening, the market braced for increased volatility.