Despite dropping by about $1,000, Bitcoin is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed Bitcoin in the long term.
Current Bitcoin Price Still Leads $1 Million S2F Model
Tweeting on Saturday (May 18, 2019) Bitcoin analyst “planB” showed how even at $7,300, BTC still leads the stock-to-flow (S2F) model about $1,000 on the road to hitting $1 million per coin.
#bitcoin at $7300 .. $1000 above S2F model value pic.twitter.com/2VkSiP4Oc0
— planB (@100trillionUSD) May 18, 2019
PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like Bitcoin block reward halving which occurs every four years until all 21 million BTC are mined.
According to the model, by the time of the next halving which is in May 2020, BTC’s SF should double from its current value of 25 to…