The current price of BTC is roughly in line with the popular stock-to-flow (S2F) system for technical analysis, and if the trend continues some speculate the price of the asset could reach $100,000 within the next two years. Though the S2F tool is still a controversial metric, and various groups have hampered the asset’s capacity previously, the market appears nonetheless to be viewing BTC as a potential reserve currency of the future.
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Stock-to-flow analysis, also known as S2F, is a relatively recent development in crypto TA, though the concepts of “stock” and “flow” themselves are of course not new. The basic idea of S2F is that the effect of scarcity on the BTC price can be measured using the current circulating supply of bitcoin and its rate of production, or flow. Digitalik.net defines S2F as follows:
The ‘Stock-to-flow’ is a number that shows how many years, at the current production rate, are required to achieve the current stock….