BTC’s Price Will Stay Around $10k Post-Halving, Says Stock-to-Flow Model Creator

News / 05.03.2020

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.

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.

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.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.