S2F Creator Predicts $500K Price for Bitcoin in Next Halving

PlanB, the pseudonymous analyst responsible for the creation of the Stock-To-Flow (S2F) model has made bold predictions suggesting that Bitcoin could reach an astonishing $500,000 per coin during the next halving event.

Variations in the S2F Model

The S2F model, which has gained significant popularity within the crypto community, analyzes the relationship between Bitcoin’s scarcity (stock) and its rate of production (flow). 

The model suggests that as Bitcoin’s issuance rate decreases over time, its scarcity will increase, leading to higher prices. Notably, PlanB’s model has been reasonably accurate in the past, successfully predicting Bitcoin’s price movements.

Based on the latest data and the average S2F ratio and BTC price during the halving cycle, PlanB’s updated model still suggests a price of $54,000 for the current cycle. 

However, at the time of the statement, Bitcoin was trading around $31,000, indicating a deviation from the model’s prediction. PlanB acknowledges the model’s error but believes it does not render the S2F model broken or invalid. 

Additionally, PlanB noted that the S2F model predicted a price of $4,400 during the previous halving cycle, from 2016 to 2020, but Bitcoin’s actual price was $5,800. This tiny change underlines that the model provides insights but is not perfect.

Recovery in the Crypto Industry

PlanB’s recent predictions coincide with a notable recovery in the overall crypto ecosystem. Bitcoin, in particular, has undergone a price spike, testing its critical resistance level. At the time of writing, Bitcoin is trading at a spot price of $29,741.98, representing an increase of over 1.19% within the past 24 hours. 

Bitcoin’s resurgence has not only impacted its own value but has also catalyzed a rally across various alternative cryptocurrencies, commonly referred to as altcoins. As Bitcoin gains momentum, investors and traders often look to diversify their portfolios by investing in altcoins, which can lead to increased demand and subsequent price rises for these alternative digital assets.

The current market environment has seen altcoins attaining new highs and reaching new pedestals. The positive sentiment surrounding Bitcoin’s recovery has spilled over into the broader digital currency market, with investors seeking opportunities beyond the dominant cryptocurrency.