Bitcoin may be gearing up for a major revaluation, as PlanB’s S2F model suggests the asset is 10x undervalued compared to gold despite being twice as scarce.
Bitcoin BTC $110 842 24h volatility: 0.2% Market cap: $2.21 T Vol. 24h: $56.00 B , which recently hit a new all-time high, may be on the verge of a dramatic revaluation, according to prominent quantitative analyst PlanB, the creator of the famous BTC Stock-to-Flow (S2F) model.
Comparing Bitcoin’s scarcity and market cap to gold, PlanB asserted that Bitcoin is at least 10 times undervalued in the current cycle, a conclusion that indicates that the world’s largest digital asset could hit much higher prices.
Gold market cap is ~$20T
Bitcoin market cap is ~$2T
So, gold is worth 10x bitcoinGold scarcity (stock-to-flow ratio) is ~60
Bitcoin scarcity is ~120
So, bitcoin is 2x scarcer than goldIMO bitcoin is at least 10x undervalued pic.twitter.com/j6dc9uTRhJ
— PlanB (@100trillionUSD) July 21, 2025
Scarcity vs. Valuation: Bitcoin Outshines Gold
Gold, with a market capitalization of approximately $20 trillion and a stock-to-flow ratio (a measure of scarcity) of around 60, is currently valued 10 times higher than Bitcoin, which holds a $2 trillion market cap, as per PlanB.
However, Bitcoin’s stock-to-flow ratio has now surged to around 120, making it twice as scarce as gold. PlanB visualized this on a logarithmic chart plotting market cap against scarcity as BTC rallied to a new ATH, leaving investors running towards the best crypto to buy.
BTC, Silver, Gold, and Real Estate | Source: TradingView
Bitcoin, gold, silver, and real estate all fall along a tight regression line, with the R² value of 0.995 underscoring the robustness of the model. Yet, Bitcoin’s current position lies significantly below the trendline, implying that it is heavily undervalued relative to its intrinsic scarcity.
On-Chain Metrics Support Bullish Continuation
On-chain analysis firm Glassnode reported that Bitcoin wallets across all cohort sizes, from retail holders to whales holding over 10,000 BTC, have resumed aggressive accumulation, suggesting broad market conviction in the ongoing rally.
All major #Bitcoin cohorts by wallet size are back in near-perfect accumulation mode. Even >10K BTC whales are participating at levels last seen in Dec 2024. The alignment across wallet sizes suggests broad-based conviction behind the current $BTC uptrend. pic.twitter.com/GuRwMVGaob
— glassnode (@glassnode) July 21, 2025
In parallel, the SOPR (Spent Output Profit Ratio) for long-term holders has surged to a new 2025 high, surpassing the mid-range but still far from euphoric levels historically seen at market tops.
The indicator currently sits just above 2.5, well below the danger zone at 4.0. This suggests that while some profit-taking is underway, the market is not yet in the mass distribution phase typical of macro cycle tops.
SOPR Long Term Holders | Source: TradingView
The upward momentum, according to analyst Gaah, still has room to run before exhaustion sets in.
Bitcoin Price Analysis: Technicals Point to Higher Targets
According to the daily chart below, Bitcoin is firmly bullish. As of July 21, BTC is trading at around $118,000 on Binance, having bounced off its lower Bollinger Band earlier in the month and currently testing the upper band around $123,000.
The Bollinger Bands are wide and expanding, signaling high volatility and trend continuation potential.
Meanwhile, the MACD shows a bullish crossover, with the MACD line above the signal and histogram trending positive. The RSI stands at 64.65, entering bullish territory but not yet overbought.
BTC Daily Chart with Momentum Indicators | Source: TradingView
On the other hand, the Balance of Power (BoP) in positive territory at 0.23 alongside Chaikin Money Flow (CMF) at 0.08 hints at capital inflows in the near future.
Bitcoin’s current $2 trillion market cap, despite its superior scarcity compared to gold, suggests deep undervaluation. PlanB’s revaluation theory could bring the digital asset’s valuation to gold’s $20 trillion.
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