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What price will BTC reach by the end of the year according to the Stock-to-flow model?

2 min read

 

BTC by stock-to-flow
Source: SHutterstock.com/Andrea Izzotti

Stock-to-flow (S2F), is one of the most accurate quantitative models that attempts to evaluate and predict the price of BTC. We can also understand stock to flow as the number of years it takes to double our current stock. According to the model, the price of BTC should exceed up to $ 100,000.

However, BTC is currently recovering from a larger deviation from S2F at the end of July. It seemed that the model could be disrupted. This is not the first time the price has been made BTC negatively deviated from the model. The derogation began at the end of October 2018 and lasted until mid-June 2019 for almost seven months. By comparison, the current continuing negative deviation lasts only about three months. Interestingly, for the rest of the year, the S2F is fairly flat and predicts a similar target at the beginning of the fourth quarter.

Stock-to-flow.  Source: BuyBitcoinWorldwide

 

Stock-to-flow. Source: BuyBitcoinWorldwide

Will the BTC price offer break the S2F model?

Considering current sentiment and long-term foundations, it is out of the question to say that BTC will reach $ 100,000 by December. These are mainly October and November, which were historically green months for BTC.

Although the S2F has so far been very accurate in predicting the price of BTC, it is important to note that all technical indicators have their limitations. Switching to $ 100,000 in four months would take significant inflow of capital. While this is certainly not impossible, it seems unlikely now. Investors’ attention has focused on alternative crypto assets such as Ethereum, Cardano and Solana.

Thanks to NFT and DeFi, transaction fees in Ethereum network have risen to unprecedented levels

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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