On his daily Crypto Banter broadcast, Man Ran predicted the best-case scenario for Bitcoin and the cryptocurrency markets as a whole. In the long run, he believes the market will flourish.
According to Man Ran, the decline of Bitcoin’s dominance indicates that a lot of money is now invested in alts, and investors are getting more confident in the market. Despite a slight pullback, Bitcoin has not broken and has actually bounced off trends, indicating that the market is still optimistic.
Ran feels the Bitcoin pullback is a healthy correction, because it is not ideal for the market and leveraged derivatives to rise up too quickly. He’s not concerned (about the pullback) because evidence indicates that the amount of dry powder on centralized exchanges is increasing.
Dry powder refers to the amount of committed, but unallocated capital big entities have on hand. In other words, it’s an unspent cash reserve that’s waiting to be invested. $222m worth of stable coins were transferred to centralized exchanges.
This indicates that whales were expecting a pullback when he predicted on the show on Monday and had the funds on hand to buy the dip. While there was a pullback, data shows that whale holdings increased by 13,000 BTC, or $591 million.
Ran says the best case scenario for crypto is based on the brilliant stock-to-flow model by author, Plan B which predicted Bitcoin to go above $47,000 by August on June 20th, day before the bottom after Elon Musk’s energy FUD and China mining crackdown crashed the market.
On August 18th, Plan B tweeted that their stock-to-flow (S2F) model was aligning with on-chain signals, signalling the start of a second leg of the bull market.
Ran agrees with Plan B’s prediction that Bitcoin will move sideways in September because traditionally, Bitcoin pulls back and goes sideways between August and September before surging towards the end of the year.
Altcoins will be the largest gainers in the next leg of the bull run, according to Ran, since adoption is key, and Bitcoin adoption has already occurred. To back up his assertion, he presented data from on-chain and social metrics business Santiment.
“Bitcoin is at its lowest discussion in three months, as all eyes have been on the major Altcoin surges that have been happening over the past month,” Santiment tweeted about their index discovery.
This episode premiered on August 18th, 2021.