{"id":405609,"date":"2019-11-27T19:00:43","date_gmt":"2019-11-27T19:00:43","guid":{"rendered":"https:\/\/uniquehot.com\/?p=405609"},"modified":"2024-06-11T09:35:15","modified_gmt":"2024-06-11T09:35:15","slug":"bitcoin-falls-20-below-stock-to-flow-forecast","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-falls-20-below-stock-to-flow-forecast\/","title":{"rendered":"Bitcoin Falls 20% Below Stock-To-Flow Forecast"},"content":{"rendered":"

Because Bitcoin<\/a> is a new, emerging technology unlike anything before it, it is difficult to give the speculative asset a meaningful value, and instead, market dynamics like supply and demand take over.<\/p>\n

One attempt to assign a fair market value to Bitcoin has been done through a highly-cited stock-to-flow model. However, Bitcoin price is now trading between 15 and 20 percent below the projected stock-to-flow value of the asset, suggesting that the asset is currently undervalued and that it is “time to pay attention.”<\/p>\n

Time to Buy BTC? Bitcoin Falls 20% Below Stock-to-Flow<\/h2>\n

Bitcoin price<\/a> throughout 2019 had been following along the highly-cited stock-to-flow model, popularized by crypto analyst Plan B. The model has been referred to on CNBC Fast Money a number of times, and has been considered among the first accurate way of providing a meaningful measure of Bitcoin’s value based on its supply.<\/p>\n

Related Reading | Legendary Bitcoin Short Seller Says To Watch For Base To Form Before Buying<\/a><\/strong><\/em><\/p>\n

According to the stock-to-flow model<\/a>, Bitcoin should be on track to reach roughly $55,000 per BTC by its halving this coming May 2020. Starting in 2019, Bitcoin appeared to be well on its way to such figures, rallying over 350% from trough to peak, before it was rejected at $14,000.<\/p>\n

Currently, Bitcoin is trading around $7,000 \u2013 roughly 50% of the peak value it reached in 2019, but also a far cry away from the $55,000 it is projected to reach this May \u2013 a mere six months away at this point.<\/p>\n

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Bitcoin's Stock to flow model. <\/p>\n

Currently below s\/f by 15-20% <\/p>\n

Its not a race but it if you bullieve in the narrative, its time to pay attention. $btc<\/a> pic.twitter.com\/mfZKXpYY0A<\/a><\/p>\n

— filbfilb (@filbfilb) November 27, 2019<\/a><\/p><\/blockquote>\n