They mentioned that during the past week, $5.2 billion worth of BTC and $3.1 billion worth of ETH were moved off exchanges. Historically, this has been a bullish sign as the coins were moved back into cold storage and were not intended to be sold immediately anymore.
Matrixport also shared the following graph for Bitcoin, noting that we will soon see BTC breaking the triangle:
PlanB’s new S2F model suggests a $454k price target for BTC
532k target was based on (original 2019) stock-to-flow model: BTC=0.4*110^3=~532k
The recent refitted S2F model (with 5 years new data since 2019) has similar results: BTC=0.25*122^3=~454k
— PlanB (@100trillionUSD) June 3, 2024
The ‘Stock-to-flow’ is a number that shows how many years, at the current production rate, are required to achieve the current stock. The higher the number, the higher the expected price.
BTC surges in anticipation of ECB’s expected rate cut
With recent drops in inflation, the ECB is predicted to lower its benchmark rates. Money markets suggest a 93% chance of an ECB rate cut in the upcoming monetary policy meeting.
Bitcoin is often seen as a hedge against inflation. If the ECB rate cut raises inflation expectations, it could potentially attract more investment as it is considered “digital gold”.
