The creator of the notorious stock-to-flow model (S2F), Plan B has recently detailed that the price of bitcoin has surpassed the S2F model price by 26%. The strong momentum has a number of crypto enthusiasts thinking that bitcoin prices reaching the $100k to $288k range by the year’s end is possible.
Price of Bitcoin 26% Higher Than S2F Trajectory
Plan B’s stock-to-flow model otherwise known as (S2F or S2FX) is a popular chart that measures the existing number of BTC in circulation (stock) and pairs it against the number of issued coins minted during mining (flow).
To many crypto enthusiasts, the S2F model so far has been fairly consistent and following along the mapped trajectory Plan B and others have estimated. In November 2020, the S2F creator doubled down and told the public that there was “no doubt whatsoever” in his mind that his S2F model was “correct.”
At the time, Plan B said that he predicts the price of BTC will “tap $100K-288K before [December] 2021. In fact, I have new data that confirms the supply shortage is real,” he added. On March 1, 2021, Plan B revealed that the S2F model was still working and the price of BTC was actually 26% above the model’s predicted trajectory.
“New orange dot,” Plan B tweeted. “Feb close $45,240 (Jan was $33,141 and current price is $46,500)… like clockwork.” Two days later, Plan B wrote that ever since he drafted the model back in 2019 the prediction has been on point.
Bitcoin S2F model was published in March 2019. The model’s out-of-sample performance (on new data after Feb 2019) has been spot on.
In another tweet on Wednesday, Plan B criticized the S&P 500. “My most hated chart about bitcoin,” he said, sharing a correlation technical analysis chart. “S&P 500 correlation… S&P $4K and BTC $100K soon?” Plan…