Stock-to-flow model possibly invalidated as Bitcoin price loses $30K
Cointelegraph
Published Jul 20, 2021 08:57AM ET
Updated Jul 20, 2021 12:00PM ET
As the price of Bitcoin (BTC) continues to struggle around the $30,000 mark, the widely accepted stock-to-flow (S2F) model to price Bitcoin, coined by Twitter user and unnamed Dutch investor Plan B, is now the farthest from its estimates.
The model was popularized by the Twitter pseudonym more than two years ago in March 2019 and amid a minor bull through Q1 2019. It’s considered to be one of the leading quantitative valuations for the first-ever scarce digital currency. The model presumes that scarcity of certain assets or commodities drives its price.
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Written By: Cointelegraph
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