Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The S2FX model predicts that the Bitcoin (BTC) price will surely touch $100K in the next few months, and $288,000 by 2024. Fidelity Director has praised PlanB for making accurate BTC price predictions so far using S2FX.
PlanB, the creator of the Bitcoin stock-to-flow model, is pretty much confident that the BTC price is following his charts. On Monday, March 1, PlanB provided an update post the major BTC price crash on the previous day. Before today’s 6% surge, BTC was trading at Around $45K levels on Monday when PlanB’s update arrived.
🟠New orange dot: Feb close $45,240! (Jan was $33,141 and current price is $46,500) .. like clockwork🚀 pic.twitter.com/zcNuTVZQZx
— PlanB (@100trillionUSD) March 1, 2021
As the author notes, the BTC price is following the S2FX model like a “clockwork”. Previously, PlanB has stated several times that Bitcoin (BTC) is all set to touch $100K levels anytime between April-September this year. The way Bitcoin has been moving so far in 2021, the target price doesn’t seem impossible.
At press time, BTC is trading 6.6% up at a price of $49,064 with a market cap of $913 billion. On February 22, Bitcoin (BTC) touched an all-time high of $58,000, however, it has corrected more than 20% since then. Since BTC price movement continues as per the S2F model, reach $288,000 by 2024.
Bitcoin Stock-to-Flow (S2F) model has gained much popularity among its investors and PlanB’s followers. The model measures the futures BTC price movements based on the number of years it would take the current BTC supply. A higher value of S2XF is a bullish indicator as it indicates scarcity.
Fidelity Director Praises PlanB’s Bitcoin Stock-to-Flow Model
On Monday, Fidelity‘s director of Global Macro Jurrien Timmer released his new report “Understanding Bitcoin” wherein he explains how Bitcoin has gained mainstream adoption and its evolution as Digital Gold. “In my view, bitcoin has evolved to the point that it could be treated as a form of digital gold…a possible counterweight to future monetary inflation,” he tweeted.
Interestingly, Timmer has mentioned the Stock-to-Flow (S2FX) model and why he finds it exciting. He writes:
“Bitcoin’s Stock-to-Flow (S2F) pricing model is a popular valuation approach among bitcoin’s most vocal proponents. The S2F model’s price projections are eyepopping. The model predicted the price of one bitcoin at $24k this year (done!) and $463k in 2025. One can see why bitcoiners are so excited”.
Timmer, however, adds that while taking the supply of BTC into the equation, the S2FX model doesn’t take the demand into consideration. “Again, price lies at the intersection of demand and supply, and without the demand side kicking in, it doesn’t really matter how scarce the supply is. Thus, I see S2F as a one-dimensional model in that regard,” he notes.