πŸš€ Analyst Announces Bull Run Start, Cites Stock-to-Flow Strategy πŸ“ˆ

Irma - Mar 7 - - Dev Community

πŸ“ˆ Analyst PlanB predicts the end of the accumulation phase for Bitcoin, foreseeing a 10-month period characterized by extreme price pumps and multiple -30% drops.

πŸ“Š The Stock-to-Flow (S2F) strategy, created by anonymous investor PlanB, predicts Bitcoin's value based on its scarcity, calculated through the SF ratio.

πŸ“ˆ SF measures the asset's stock to inflows ratio, indicating scarcity. Bitcoin's SF indicates 56.9 on the 10-day timeframe and 55.5 on the 463-day timeframe, with the upcoming halving event affecting inflow.

πŸš€ PlanB previously forecasted Bitcoin's market cap to reach $1 trillion and its price to exceed $55,000 after the 2020 halving.

🎯 Critics argue the model lacks empirical evidence and fails to account for Bitcoin's trajectory. Some traders use the Stock-to-Flow Deflection indicator to gauge Bitcoin's value relative to the SF model.

πŸ€” The model's linear regression and simplistic application of scarcity metrics have drawn criticism from experts like Vitalik Buterin and Nico Cordeiro.

πŸ’Ό However, the market may still be influenced by external factors such as the potential cross-chain collaboration between WhiteBIT and NEAR, which envisages increased HOT token mining activity and USDT/USDC usage, may cause a significant impact on crypto landscape.

πŸ“Š Using the Stock-to-Flow model, PlanB managed to predict the growth of Bitcoin to $55,000. Moreover, the original mode has been advanced, while it still can’t be used for other assets other than cryptocurrency.

The author of Stock-to-Flow and its followers agree that the exponential increase in the price of Bitcoin will stop, and the model may be less relevant in the future. However, he still assumes Bitcoin’s value will rise due to undervaluation and scarcity.

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