BTC’s Price Will Stay Around $10k Post-Halving, Says Stock-to-Flow Model Creator
Plan B, the creator of Bitcoin’s stock-to-flow model is certain that Bitcoin’s price will stay around $10,000 after the halving. After that, he claims the coin will slowly climb to the $100,000 model value, that is expected to be reached by December 2020.
S2F multiple should drop dramatically before the halving pump!!!!😞
— 🦁MrCryptoShit🦁 (@medeot_stefano) March 4, 2020
The stock-to-flow (S2F) model tries to predict the price of Bitcoin based on its supply cuts. It has been attracting a lot of skepticism from investors who believe that Bitcoin’s price moves are driven by demand. However, the model has been verified and adopted by many quantitative analysts.
According to the S2F creator, the upcoming May halving will produce similar results to the previous two due to co-integration between the S2F and the Bitcoin price. He however cautioned investors that there was no guarantee that Bitcoin would behave in a similar fashion like 12 years ago. Yet he added that even with 10% chance of succeeding, it might be a great bet.
So unless 2021 is the very first year that #BTC price is not above the S2F model….
— deedle (@deeeedle) March 4, 2020
Meanwhile, options traders are still skeptical about Bitcoin’s ability to start another major rally after the upcoming halving event. According to data from Skew, there is a tiny 4% chance that Bitcoin could reach a new high later this year.
Featured image courtesy of Shutterstock. Source: Cryptopress.