The Bitcoin community just might see the much-anticipated bull run it has been waiting for since the third halving took place weeks ago. According to the popular stock to flow (S2F) model, Bitcoin just might be preparing to spike.
The popular S2F creator PlanB, recently posted to Twitter, an update on the model. Generally, the stock to flow ratio works by calculating the amount of Bitcoins in circulation, and compares this number with the amount of Bitcoins produced each year.
Generally, the model finds that the S2F ratio of Bitcoin rises steadily as new supply reduces. The model shows its indices in red and blue dots. According to PlanB’s tweet, a red dot has been released. A red dot coming up after a few blue dots is usually revealed following a halving. Since the halving already ensures that there is a significantly reduced amount of Bitcoins entering the market, the S2F shows that Bitcoin just might be geared for a surge.
This is the first red dot on the S2F chart in three years. The last time was the bull market enjoyed in 2017.
In April, PlanB published an improved version of the S2F model. Called the stock-to-flow cross-asset (S2FX) model, it considers gold and silver in calculating Bitcoin’s price and predicts the king coin could hit $288,000 by 2024.
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