Bitcoin Stock-to-Flow Model on Track, $100K BTC Price Coming Soon

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.

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 Electronic Money (Image: MaxPixel)
Bitcoin Electronic Money (Image: MaxPixel)

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.

Read more: Coinspeaker

Citi Group and Ruffer Predict Breakout Point for Bitcoin Mainstream Adoption

Ruffer, the British asset manager, and Citi Group, the investment banking giant in separate predictions said that Bitcoin and cryptocurrencies are inching closer towards mainstream adoption. The prediction comes at a time when Bitcoin price seems to be stuck under $50,000 ever since breaking past its new all-time-high above $58,000 a couple of weeks back.

Ruffer has a total of $28.6 billion in total assets under its management and recently also revealed that it has invested 3% of its asset in Bitcoin and also holds indirect exposure through its position in MicroStrategy. The firm in its half-yearly financial report lauded Bitcoin as the next-gen institutional investment asset and said,
“We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialisation of bitcoin,”

The firm added

“Bitcoin brings something significantly different to the portfolio.Due to zero interest rates the investment world is desperate for new safe-havens and uncorrelated assets,”

Image by 3D Animation Production Company from Pixabay
Image by 3D Animation Production Company from Pixabay

CITI Group Says Bitcoin Can Become Primary Choice of Currency For International Trade
CITI Group released its research note on Monday as well, in this note CITI Group cited Bitcoin’s growing adoption and believe it is at the starting point of mainstream adoption and its primary use could grow in the field of international trade. The investment banking giant in its research note said,

Bitcoin price has more than doubled since the start of the year, however, the price movements have changed significantly in 2021, where the top cryptocurrency has risen in the first week of every new month creating a new all-time high, followed by a sharp correction and weeks of consolidation before another price rise.

After covering the losses of the previous month in the first week of February, Bitcoin rose to a new ATH and corrected 20% in the following week followed by another week of consolidation to rising above $50,000. The highly bullish events such as MicroStrategy’s another Billion Dollar Bitcoin purchase and the US Government’s approval of the $1.9 Trillion Stimulus bill also couldn’t help Bitcoin price to stay above $50K. The start of the new month and continuous institutional buying along with other on-chain metrics suggest Bitcoin could start its next leg of the bull run.

Read more: CoinGape