The crypto analyst behind the controversial stock-to-flow (S2F) Bitcoin price analysis model says BTC is following his predictions “like clockwork.”
Pseudonymous analyst PlanB’s latest version of the S2F, the BTC S2F cross asset (S2FX), enables the valuation of different scarce assets like silver, gold and Bitcoin with a single formula. It predicts Bitcoin will be worth $288,000 by the end of 2024.
And so far, according to Plan B, it’s on track.
🔴🔴🔴🔴$11880 (Sept actual)
🔴🔴🔴 $11655 (Aug close)
🔴🔴$11356 (July close)
🔴$9132 (June close)#Bitcoin .. like clockwork🚀 pic.twitter.com/VjVk6PEojv— PlanB (@100trillionUSD) September 1, 2020
Crypto analysts and influencers are divided on whether it makes sense to apply the stock-to-flow model, which is usually applied to precious metals, to a digital asset like Bitcoin.
The digital asset managing firm Grayscale, for example, notes that commodities with high S2F ratios are typically sought after by investors, but cautions that the S2F price model does not guarantee an increase in the asset’s value.
“While it’s true that price has followed this stock-to-flow model with high correlation, the relationship may be spurious and does not take into account the requisite demand for price appreciation.”
PlanB’s prediction that BTC could hit $288,000 is his third. The analyst’s original S2F model indicated Bitcoin would trade around $55,000 between 2020 to 2024. The second incarnation of the model showed the dominant cryptocurrency on track to hit $100,000 in the same time frame.
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