PlanB’s S2F Model: Bitcoin’s Price Could Hit $500K at Next Halving

Summary: The Stock-To-Flow (S2F) model, developed by anonymous analyst PlanB, suggests that Bitcoin's price could reach $500,000 at the next halving event. The model examines the connection between Bitcoin's scarcity and production rate, and has historically shown accuracy in anticipating market price changes.

According to PlanB, the anonymous analyst who developed the Stock-To-Flow (S2F) model, Bitcoin’s price might skyrocket to an unbelievable $500,000 at the next halving event.

The S2F model examines the connection between Bitcoin’s scarcity (stock) and its production rate (flow) and has acquired widespread traction within the crypto community.

Historically Accurate

According to the model, Bitcoin values would rise as scarcity increases due to a slowing issuance rate. Notably, PlanB’s model has historically shown a degree of accuracy, correctly anticipating changes in Bitcoin’s market price.

PlanB’s new model still indicates a price of $54,000 for the current cycle based on the most recent data and the average S2F ratio and BTC price throughout the halving cycle.

Not Flawless Though

Bitcoin’s price was roughly $31,000 at the time of the announcement, which was significantly different from what had been predicted by the model. Although Plan B is aware of the flaw in the model, they maintain that it does not make the S2F model incorrect.

PlanB also pointed out that during the last halving cycle (2016-2020), when the S2F model projected a price of $4,400, Bitcoin’s actual price was $5,800. This tweak emphasizes how the model is helpful, but not flawless.

The current upswing in the crypto market mirrors PlanB’s forecasts. In particular, Bitcoin’s price has surged, pushing it to the brink of a key resistance level. At the time of writing, the current price of a Bitcoin was $29,974, a gain of almost 1.27% in the last 24 hours.

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