As the leading two cryptocurrencies, BTC and ETH, finally saw decent gains, a wave of bullishness flooded the market. Bitcoin has remained stable over the last 24 hours; the difference this time was a combination of sell-offs and gains, with no major uptick in the value of the majority of the coins. At the time of writing BTC is trading at $41,928.30, while gaining just 0.36 percent in the last 24 hours.
Is S2F (Stock to flow) dead?
PlanB reported in a tweet on Wednesday that the BTC price is currently 60% below the stock-to-flow model, despite some people believing the S2F is dead. In addition, according to PlanB, Bitcoin (BTC) will reach a $100k average price in two years.
PlanB believes the price of BTC will reach $100,000 in the near future. Investors, on the other hand, will have to wait at least two years to see a major rally. According to the graph, the next halving will occur in mid-2024. Every Bitcoin halving has caused the price of the cryptocurrency to skyrocket.
When it comes to buying and selling BTC, he recommends that investors stick to their own opinions and avoid listening to what others have to say. To make an informed judgment, people should look at the chart and check how many times the BTC price has diverged from the stock-to-flow model value.
The S2F model had previously anticipated that the $100k mark will be reached in December 2021. The strategy, however, failed when Bitcoin fell below $45k from its all-time high of $68k in November. This came after China’s crackdown on cryptocurrency trade and mining, as well as worries over Bitcoin’s efficiency.
Furthermore, the price dropped even further under the current intensifying Russian-Ukraine tensions, rising inflation, and political pressure. All of this may have contributed to a divergence from the daily stock-to-flow model value, with the present price trading at 60% below the model value.