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Cryptocurrencies: 12,418
Markets: 643
Marketcap: $ 1.08 T
24h Vol: $ 91.99 B
BTC Dominance: 41.01%

Bitcoin Stock2Flow model. What does it look like today?

Bitcoin Stock2Flow

Bitcoin Stock2Flow – Established assets tend to maneuver in cycles. albeit the long-term trend of the many assets is positive, we see the everyday “ups and downs” over shorter periods of your time .

The Bitcoin price has shown one thing especially within the past: The long-term trend looks positive and large upward movements happen in cycles. PlanB, best known for BTC thanks to its stock to flow model, spoke about such a cycle during a recent tweet.

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In his opinion, now’s the time for an additional big move. His opinion relates to the stock-to-flow model he uses, which is predicated on historical data from a selected period. Let’s check out the tweet:

As we will see from the model, the present Bitcoin price (red dots) is below the anticipated reference point . So now it might be time for the course to leap .

PlanB looks at the “old” stock to flow model

At now it should first be emphasized that the model employed by PlanB corresponds to version 1 of its S2F model. the present version is that the Stock to Flow Cross Asset (S2FX) model. It corresponds to an expansion and includes macroeconomic factors within the price of the Bitcoin course.

According to the S2FX model, a Bitcoin price of $ 288,000 awaits us by 2024. Compared to the model now referenced, S2FX doesn’t contain any sudden transitions, but rather shows longer phases of growth.

Still, PlanB believes its original S2F model is correct with a price prediction of $ 100,000 for 2021. A Twitter user therefore asked him whether we will now achieve an outsized 10x move by the top of 2021, because the model is otherwise ‘broken’.

Then PlanB replied:

Yes. We’re seeing an enormous move like 2013 or a continuing but sharp increase like 2016-2017.

PlanB sees the time for the Bitcoin price to rise. Accordingly, we should always see a movement of 10x within the next 15 months if his model proves valid. If this is often not the case, the S2F is broken.

Disclaimer: None of this is financial advice. All content on this website and this article is provided for informational purposes only. You must consult your financial advisor first before making any financial decisions.