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BTC $42792.79 (-2.2%)
ETH $3016.13 (-1.3%)
USDT $1.00 (0.01%)
BCH $541.17 (-1.1%)
BSV $151.41 (7.12%)
LTC $158.65 (-0.7%)
BNB $367.58 (-0.5%)
ADA $2.14 (0.59%)
DOGE $0.21 (0.31%)

Bitcoin Stock-to-Flow Price Model Echoes Early 2019

Bitcoin Stock-to-Flow Price Model Echoes Early 2019
  • PlanB tweeted news that BTC/USD is now the furthest away from his S2F model in two years.
  • Bitcoin has been unable to gain back previous growth rates following its crash in May
  • The stock-to-flow model is extremely popular for its accurate predictions.

PlanB announced on July 1 in a tweet that BTC/USD is now the furthest away from his stock-to-flow model’s estimates in over two years.

The bitcoin analyst noted,

“Next 6 months will be make or break for S2F (again).”

Post May’s huge capitulation event, Bitcoin price action has been unable to regain lost ground. In fact, it has stayed around 50% below recent all-time highs. This is putting price models in for a serious test, as on-chain indicators are taking on bullish appearances.

Looking at stock-to-flow, the situation is getting out of hand. As of now, it calls for an average price of at least $100,000 this halving cycle. So far, the model has taken into account every twist and turn in BTC price ever since its inception. In fact, it has gained major popularity for its accuracy. Now, however, the spot price is reaching the model’s limits. PlanB admitted,

“Even for me it is always a bit uneasy when bitcoin price is at the lower bound of the stock-to-flow model.”

Still, there are hopes that Bitcoin will be able to recuperate itself in a matter of months, owing to its past history of major growth jumps. In that sense, there is little cause for concern.

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Lisa is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.