This Week’s Top Bitcoin News
Bitcoin experiences a rough start in May, as its trajectory apparently has peaked after a bullish market.
Crypto analyst Plan B, who is known for having created the Stock-to-Flow (S2F) model, predicted via X (formerly Twitter) that the average price of Bitcoin could reach $500 thousand at the end of the current bullish cycle. He added that the next 2028-2032 cycle will be much more extreme, suggesting a price tag of $4 million.
Plan B’s May 7 post reads as follows:
“Average bitcoin price 2020-2024 halving cycle was $34k. A bit below 2019 S2F prediction of $55k, but still in normal range and not bad given BTC<$4k when prediction was made. Refit of S2F with new data (below) shows similar parameters & results: $0.5m 2024-2028 and $4m 2028-2032.”
It should be noted that PlanB’s prediction model, as it itself recognizes, is not without flaws. In this regard, PlanB explains that the line towards $500 thousand will not be straight, with intermediate falls to levels between $100 and $200.
New US Government Cryptocurrency Wallet Found
Arkham, an on-chain analysis firm, recently detected a new crypto wallet belonging to the US government, containing nearly 4,000 BTC with an approximate amount of $251 million.
Last January, Arkham was able to identify the address where the BTC seized from Banmeet Singh, a drug trafficker, was located.
According to available data, the US government is believed to currently hold 216,811 BTC, estimated to be worth close to $13.83 billion. Based on this data, the United States thus becomes one of the main whales in the world of cryptocurrencies, above MicroStrategy, which owns 214,278 units of the pioneering digital currency.
Core Scientific Mined ₿2,825 in Q1 2024
Bitcoin mining company Core Scientific published Q1 2024 financial results, showing its steps out of bankruptcy. The report states that Bitcoin’s net income was $210.7 million, significantly better as compared to the same period in 2023, when they had losses of $0.4 million. Meanwhile, the total revenue was $179.3 million, an increase of $58.6 million compared to last year’s. According to estimates, the total mining revenue increased as the Bitcoin prices soared, and that Core Scientific improve its mining capacity.
All in all, during Q1 2024, Core Scientific managed to produce 2,825 self-mined Bitcoin, equivalent to about $175 million.
Financial Firm Expects Hong Kong Bitcoin ETF Sector to Reach $1 Billion in AUM
Financial firm CF Benchmarks’ CEO Sui Chung claims that Hong Kong Bitcoin ETFs will reach $1 billion in assets under management (AUM) before the end of 2024.
In the CEO’s opinion, Hong Kong spot Bitcoin EFTs will need time to prove how convenient they are. CF Benchmarks, in Chung’s opinion, represents almost half of the cryptocurrency benchmarking market. Additionally, the company is currently working with new Bitcoin ETFs in the region.
The firm operates in several jurisdictions, and provides index or benchmark data services. Additionally, it offers projections to several US ETFs, an activity it also carries out in Hong Kong.
Sui Chung highlighted the importance of having trust in issuers and having an expanding ETF market. With the entry of Bitcoin ETFs in different countries, investors may feel less biased.
South Korea and Israel are soon expected to be the next spot markets for Bitcoin, demonstrating the continued growth of this form of investment.
By Leonardo Perez