June 21, 2021

En route to $200K? Bitcoin closed February 26% above Stock-to-Flow model price

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The price of Bitcoin (BTC) is outpacing the popular Stock-to-Flow (S2F) model, which predicts that the BTC price would eventually reach $200,000.

The S2F model forecasts the long-term price trend of Bitcoin by taking two main factors into account, namely the amount of BTC in existence (the stock) against the amount of newly mined coins entering the market (the flow).

Bitcoin is on track to $200,000 based on S2F

According to the the S2F multiple, the price of Bitcoin should be hovering at around $36,851 in order for the S2F model to be on track.

Due to the recent bull cycle and Bitcoin’s strong momentum, BTC/USD is now well above the S2F estimate at around $49,000.

Stock-to-Flow Multiple (463d)
2021-02-28, 23:59 UTC

ln(actual / model)

Actual price: $45,359.46
Model price: $36,851.01
S2F multiple: 0.21 pic.twitter.com/rGgfgNmS3C

— S2F Multiple (@s2fmultiple) March 1, 2021

Saifdean Ammous, the renowned author of The Bitcoin Standard, emphasized that Bitcoin rarely diverged from the S2F model since it was created well over two years ago.

The accuracy of the S2F model to date suggests that the market is recognizing the value of BitcoinTitle: En route to $200K? Bitcoin closed February 26% above Stock-to-Flow model price
Sourced From: cointelegraph.com/news/en-route-to-200k-bitcoin-closed-february-26-above-stock-to-flow-model-price
Published Date: Tue, 02 Mar 2021 11:00:00 +0000