The next 6 months will make or break S2F, the most famous Bitcoin model, says PlanB who popularized the method.
The Stock-To-Flow Model
The S2F model is a simple method used to predict asset prices. PlanB first posted a chart for Bitcoin based on the technique back in 2019.
Here is new chart based on the S2F method for Bitcoin’s current price prediction, posted by PlanB on Twitter:
BTC’s S2F model | Source: PlanB
The trend predicted by S2F is remarkably close to the real thing. There are a few points of deviation, however, including the current 2021 period.
As the name Stock-To-Flow would imply, it’s calculated by dividing the stock (supply) with the flow (annual production).
Higher the S2F value, more scarce is the commodity. PlanB used this table to showcase how this works:
The S2F values of some precious metals | Source: PlanB
As you can see, the above table shows data for a few