“Bitcoin Is 60% Below Stock-To-Flow Model Value”- PlanB

Varinder Singh
March 19, 2022
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BTC recovers from 2020 lows

Stock-to-flow (S2F) model created by analyst PlanB had helped crypto investors make a more structured decision when betting on cryptocurrencies, considering the volatility in the crypto space. The model has historically correlated with the Bitcoin (BTC) price which makes it popular for predicting price based on its value in a period of time.

With some people thinking the S2F is dead, PlanB announced in a tweet on Wednesday that BTC price is currently 60% below the stock-to-flow model. Also, as per PlanB, the Bitcoin (BTC) will reach the $100k average price but will take two more years.

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Bitcoin Will Hit $100K in Two Years

PlanB says he is confident that BTC price will reach $100,000. However, investors have to wait for at least two years to observe a massive rally. As per the chart, the next halving is scheduled to take place in mid-2024. Every Bitcoin halving had historically resulted in the BTC price to shoot massively.

He suggested BTC investors have their own opinion when making buying and selling decisions, and avoid getting into what others say. People need to look at the chart and see, how many times BTC price deviated from stock-to-flow model value to make an informed decision.

Bitcoin daily stock-to-flow and price
Bitcoin daily stock-to-flow and price. Source: PlanB

Previously, the S2F model predicted the $100k mark in December 2021. However, the model failed as the Bitcoin ended below $45k from its ATH price of $68k last November. This happened after the Chinese crackdown on crypto trading and mining, as well as questions raised on the efficiency of Bitcoin.

Moreover, amid the current escalating Russian-Ukraine tensions, rising inflation, and political pressure, the price dwindled even more. These all have possibly resulted in the diversion from the daily stock-to-flow model value, with the current price moving 60% below the model value.

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Bitcoin’s Support From the Community

Bitcoin is currently trading at $40,516, up nearly 5% in the last 24 hours. Moreover, the trading volume is $34 billion in the last 24 hours, rising almost 43%.

This week, Bitcoin influencers including Michael Saylor, Elon Musk, and Mike Novogratz have shown trust in Bitcoin. Saylor explained why bitcoin is a better inflation hedge and a store of value than gold and real estate. While Musk, considering the worth of Bitcoin, tweeted that he will continue to hold it, mostly under the present circumstances.

Furthermore, Bitcoin whales have become active, pulling out almost 1.2 billion BTC from crypto exchanges in just a week. However, retail investors should wait until the price breaks the 45k barrier.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.