The creator of the popular bitcoin price model called stock-to-flow (S2F or S2FX) has added a new dot to his notorious chart. Plan B said on Tuesday that “we knew bitcoin would not go up in a straight line” and added that the market action is “starting to look like 2013.”
S2FX ‘Intact’ Says Plan B
“Plan B,” is a pseudonym leveraged by the Twitter account @100trillionusd and since March 22, 2019, he’s been documenting his popular stock-to-flow (S2F) price model. Similar to the tools and technical analysis models Bitcoin.com News has written about in recent days like the Golden Ratio Multiplier and Logarithmic Growth Curves, Plan B’s model is extremely popular and he recently updated it to the stock-to-flow cross-asset (S2FX) model.
Basically, the model quantifies BTC’s scarcity in a similar fashion to scarce assets like gold. It then leverages the bitcoin in circulation and quantifies it by yearly issuance with reward halvings as well.
At the time of publication, the Bitcoin network’s inflation rate per annum is approximately 1.77% and a circulating supply of 18,723,781 BTC. Despite bitcoin losing 53% from it’s all-time high of over $64k to a low of $30k in 30 days, Plan B still confirms the S2FX model is “intact.” Moreover, current charts look awfully familiar as Plan B expressed that things are looking like 2013 right now.
“New dot: May close $37,341.. -35% .. we knew bitcoin would not go up in a straight line and several -35% drops are possible (and indeed likely) in a bull market,” Plan B tweeted. “Starting to look like 2013. S2F(X) model intact,” the popular Twitter account told his 523,000 followers. Plan B further added:
2nd bounce off the lower band of S2F model. Will S2F break? Or will this turn out to be an excellent buy signal? I know multiple hedge funds that actually trade this BTC-S2F ‘cointegration’ (despite that we can’t formally use cointegration tests because S2F…