Stock to Flow Analysis Shows BTC Could Reach $288K This Year
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Analysis from BTC’s stock to flow shows that the digital asset may reach $100,000 to $288,000 this year.
BTC and altcoins keep recording new highs with retail and institutional interest at peak level. The leading digital asset crossed $60,000 momentarily to form a new all-time high.
There have been several speculations regarding the next destination. Many suggested that the markets were overbought already and was destined for a heavy correction. Several others argue that BTC is still very undervalued.
Certain metrics point to the latter, including the stock to flow model. As pointed out by Digital Chamber’s founder, Perianne Boring, BTC may rise even further. The Stock to flow model estimates that the digital asset may reach $100,000 to $288,000, this year. Speaking on CNBC, Perianne said:
“Stock to flow says BTC should be priced at $100,000 to $288,000 this year. We have 12 years of data on Stock to flow on BTC. If you measure with the U.S. dollar, stock to flow is 94% correlated.
When you use gold, stock to flow is 99% correlated. Stock to flow also says one BTC will be 10,000 ounces of gold in 2029. That’s what people mean when they say BTC is eating gold.”
Perianne’s analysis is based on the Stock to Flow (S2F) model which evaluates the stock of a commodity against the flow of new production.
BTC’s volatility declines
BTC’s volatility has gradually declined over the past few months. JP Morgan analysts believe that this could falicitate adoption in the banking sector. Following BTC’s surge to $60,000, a major retracement was expected, but the price has stabilized instead.
In the last seven days, BTC’s price has hovered between the $56,000 support and $60k resistance. Its market cap is still well over $1 trillion.
The post Stock to Flow Analysis Shows BTC Could Reach $288K This Year appeared first on BeInCrypto.
