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Author: Admin | 2025-04-27
Tokens and mining a new token is a time and energy-intensive process, the supply influx of Bitcoin is limited to a certain amount that can come into circulation within a given timeframe. The stock-to-flow model takes this scarcity and supply limitation into account while forecasting the price of BTC. The calculation for the Bitcoin price is based on a formula that uses variables like the monthly stock to flow value and price data.Is the Stock-to-Flow Model AccurateHistorically the stock-to-flow has been one of the most accurate price forecasting models for Bitcoin as you can see in the image of the model below. However last year the popular forecasting tool is under some scrutiny after the flash crash of the crypto market in May, 2021. According to Plan B, the BTC price was supposed to have surpassed $100,000 by the 4th quarter of 2021, but that did not occur. Later in the year Plan B predicted that Bitcoin could touch $450,000 by year but a worst case scenario would be a $135,000 price by year end, both scenarios did not play out as Bitcoin reached a high of just over $69,000 for the year. Plan B argues that these predictions do not invalidate the stock-to-flow model as the Bitcoin price remains within the acceptable price range of the model.Future Bitcoin Stock-to-Flow forecastsThe Stock-to-flow chart forecasts that the price of Bitcoin (BTC) on 31st December 2022 will be $78,280. Its Bitcoin price prediction for 1 year later on the 31st December 2023 is $81,956. There is then a large price hike the following year with the BTC price prediction of $306,984 on 31st December 2024.How to view the Bitcoin Stock-to-Flow chartOn the above bitcoin chart, price is overlaid on top of the stock-to-flow ratio line. We can see that price has continued
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