While the price of Bitcoin might currently be lower than most members of its community would expect, the king coin seems to be meeting expectations in some quarters. According the crypto analyst that came up with the popular stock-to-flow (S2F) ratio, Bitcoin is performing just has expected.
The crypto analyst, PlanB, came up with the S2F model with such accuracy that impressed most of the community. The model calculates Bitcoin’s price by comparing the number of new coins entering into the market, with the volume of Bitcoin’s existing supply.
Back in April, PlanB came up with an improved S2F model called the stock-to-flow cross-asset (S2FX) model. With the S2FX model, PlanB calculated the price of Bitcoin, using a combination of other assets such as gold and silver. PlanB’s S2FX put Bitcoin at $288,000 by 2024. The analyst is now saying that the current price movements correlate with the prediction.
In a recent tweet, PlanB says that the Bitcoin price is moving according to plan, just “like clockwork”. The tweet suggests that Bitcoin’s movement from June to September seems to directly tally with the S2FX model.
The S2F model, however, is a bit controversial as there are those that believe the model might not be take all relevant factors into account. According to digital asset management firm, Grayscale, the model “does not take into account the requisite demand for price appreciation.”
Image Credits: Pixabay
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