Bitcoin (BTC) price surpasses the popular Stock-to-Flow (S2F) model, which predicts that the BTC price will eventually reach $ 200,000.
The Stock-to-Flow model predicts Bitcoin's long-term price trend by taking into account two main factors: "stocks", which means the amount of BTC in existence versus the "flow", which is the amount of newly issued coins entering the market.
Bitcoin approaching $ 200,000 according to S2F,
According to the S2F multiplier, the Bitcoin price must be around $ 36,851 for the S2F model to work fine.
Due to the recent bull cycle and Bitcoin's strong momentum, BTC / USD is now well above the S2F forecast of around $ 49,000.
Saifdean Ammous, the famous author of The Bitcoin Standard, emphasized that Bitcoin rarely leaves the S2F model because it was created more than two years ago.
The accuracy of the S2F model to date has revealed that it recognizes the value of Bitcoin due to market shortages and increased demand. Moreover, the model highlighted the value proposition of Bitcoin against the depreciating US dollar and the programmatic decline in flow, ie Bitcoin halving.
Ammous noted that this model of PlanB was launched two years ago, and even after everything that has happened in Bitcoin and the world over the past two years, the market price of Bitcoin does not deviate by more than 1 standard deviation from the projected price of the model.
PlanB, the creator of the S2F model, said he had no doubt that the price of Bitcoin according to the model will reach $ 100,000 by December 2021.
In mid-2020, PlanB said that Bitcoin could touch anywhere between $ 100,000 and $ 288,000 by December next year, saying that people were still asking if they believed its model and had no doubts about its model.
Speaking about the existence of new data confirming that the supply shortage was real, the analyst said that he thought 2021 would be magnificent and that what he said was not financial advice.
BTC is used more than USD M1
According to Willy Woo, a leading in-chain analyst, Bitcoin's monetary speed is higher than M1 USD.
This simply means that Bitcoin is worth more than the amount used to spend in US dollars. Such a trend suggests that Bitcoin is actively used as a means of simultaneously transferring a store of value and a store of value while transforming into an established asset.
Stating that Bitcoin's monetary speed is now higher than M1 USD and M1 does not move even though it is USD held in short-term accounts to buy goods, Woo said BTC is jokingly moving more than the money owned to spend, and He explained that Bitcoin is for long-term investment.
Everything seems fine for now
Currently, Bitcoin is seen as a store of value and a way to protect against inflation. The adoption of the dominant cryptocurrency as a means of payment will likely catalyze a second wave of mainstream adoption and usage when a settlement tier rises.
At this point, the value of Bitcoin may accelerate further, moving with the S2F model as the next block reward halving will occur in about three years, and the BTC price may push the S2F curve even higher.
Although Bitcoin is still seeing major corrections in price, as has happened many times during the current and past bullish cycles, the S2F model will remain on the agenda as long as BTC / USD remains within the range of short term divergences.
