Bitcoin (BTC) Price Still Follows Stock-to-Flow Model Despite 48 Percent Correction - U.Today
While Bitcoin's massive 48 percent correction from its yearly high of $13,700 might cast doubt on the new bull market, it actually remains in line with the stock-to-flow (STF) model. The first scarce digital object
The STF model, which was aims to predict the price of the leading cryptocurrency based on its scarcity, was developed by Dutch crypto analyst Plan B.
Commodities with a high STF ratio (the existing stockpile divided by the annual production) are preferred by investors because they are gradually becoming more scarce.
For example, gold, which boasts a market cap of $8.4 trln, has a ratio of 62 while silver only has 22 due to its higher supply growth (1.6 percent and 4.5 percent STF ratio is currently at 25 but it will increase after the next halvening in May 2020. "Almost entirely nonsense"
However, not everyone is amused by Bitcoin's STF model.
BTC |
$ 69943.6
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