PlanB’s S2F Model Predicts BTC at $60K: Details

The stock-to-flow (S2F) model has faced a lot of criticism since it was unable to forecast the price of leading cryptocurrency Bitcoin (BTC) in 2022, despite its prior successes. 

PlanB’s S2F Model Predicts BTC’s Future

However, the inventor of the method is still a believer and has highlighted the potential outcomes for BTC for the upcoming halving, which is scheduled to occur in a year.

The halving, which occurs every 210,000 blocks and cuts BTC output in half, is a crucial component of the “Stock-to-flow” paradigm since it lowers the flow. According to current projections, the next one should occur in around a year.

BTC at $60K Soon?

According to PlanB, the price of bitcoin in USD will remain where it is at that time. He said that after the fourth halving, the asset will continue to rise and trade at about $60,000 or more than 2x its present price. In addition, he mentioned Metcalfe’s Law as well.

What is S2F Model

The term “stock-to-flow” describes how long it would take to produce the existing stock at the current production rate. 

The price increases as the number rises. The S2F model has been discussed extensively over the past few years, with many bitcoin tops embracing it due to its positive price forecasts and many others criticizing it when it proved to be inaccurate. 

It additionally takes into account the flow, which is the yearly supply of bitcoins on the market, as well as the stock, which is the size of the current reserves (or stockpiles).

Failure to Predict Recent Market Crash

For the first several years after PlanB developed the model, it performed well, achieving a number of its goals. A forecast for November 2021 was made by PlanB, a Dutch cryptocurrency expert who used his stock-to-flow (S2F) model to anticipate the 2019 bull run. 

However, it fell well short of its most current projections, including breaching the six-digit price tag by the end of the previous year. 

Other techniques for forecasting the movement of the price of bitcoin besides technical analysis include fundamental analysis, sentiment analysis, and on-chain analysis.