Bitcoin’s stock-to-flow model indicates a 2020 halving rally

posted 3 months ago
The end of the year may be a good time to review some price predictions for Bitcoin. One model that has grown in popularity this year has been stock to flow and further research indicates that BTC price patterns are accurate. Stock to Flow has been described as the amount of a commodity held, or in circulation, divided by the amount produced annually. It has been used for BTC price predictions because the halving in May will cut the supply and inflation in half which doubles the S2F ratio.

Dutch Linux administrator Rob Wolfram noted that the previous two halving events in 2012 and 2016 caused a steep increase in stock to flow ratio in the year that followed. The model has recently been disputed by the executive editor of news for Bloomberg Digital, Joe Weisenthal said “At the moment bitcoin is holding above $7,000 which places it directly where it should be on all stock to flow charts. Halving FOMO next year could well initiate a larger rally which would confirm the model’s accuracy.
Tags: opinion, bitcoin