Bitcoin’s Potential Long-term Rally According to Stock-to-Flow Model
- The Stock-to-Flow (S2F) model by analyst PlanB suggests Bitcoin could average $500,000 between the halving cycle of 2024 and 2028.
- Recent price action saw Bitcoin reclaiming the $70,000 level despite not showing signs of trading at the projected average in recent days.
- PlanB’s model indicates a potential rise to $500,000 by around the year 2027 within the S2F framework.
- Currently, about 43% of Bitcoin addresses are holding at a loss, with many being short-term holders and treasury firms.
The S2F model predicts an aggressive average price for Bitcoin over the next halving cycle, suggesting strong potential for significant price increases if the model holds true. This comes amid recent fluctuations where Bitcoin has been hovering around key structural supports like the realized cost price and the 200-week moving average.
Despite current market conditions showing volatility, PlanB’s projection implies that Bitcoin could spend significant time above $500,000 if historical patterns continue as expected. ( Source )
