Bitcoin Price Stock To Flow

The below is an excerpt from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

It is close to make or break for the stock-to-flow (S2F) model. First released in March 2019 by the pseudonymous Plan B, the stock-to-flow model attempted to quantify the relationship between the relative scarcity of bitcoin and the price of the asset.

With the model first being released with the price of bitcoin around $3,000, the price of bitcoin impressively oscillated around the model over the past two years, but over the past three months as the price has retraced 50% from April’s highs, the deviation from the model value has widened to historic levels.

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