Bitcoin rejoins with S2F model price putting $100K BTC price right on track

Bitcoin (BTC) is precisely following price predictions and not making investors wait longer for gains this bull cycle, says famous quantitative analyst PlanB.

In a tweet on Dec. 17, the creator of the stock-to-flow price model noted that in its current halving cycle, Bitcoin’s growth is going as planned.

BTC price hits $23,562 stock-to-flow target

Despite huge volatility this week, stock-to-flow remains conspicuous in its ability to forecast the pace of change in Bitcoin price over extended periods.

Critics have argued that Bitcoin cannot repeat its behavior from the last bull cycle — specifically from 2017 — and gains this time around will be less pronounced while taking longer to materialize.

Comparing performance since May (the date of Bitcoin’s third block subsidy halving event) with the performance after the first and second halvings in 2012 and 2017, this year could not be a more textbook result, says PlanB.

“R.I.P. ‘lengthening cycles’ and ‘diminishing returns,’” he summarized alongside a fresh chart.

Bitcoin post-halving price performance chart. Source: PlanB/ Twitter

Bitcoin’s run to highs above $23,000 further allowed it to fill in empty space on the stock-to-flow model. Prior to that, at just below $20,000, BTC/USD was in fact underperforming compared with the model’s demands.

As Cointelegraph reported, however, even in November, Bitcoin was already beating its performance from the 2016 halving.

Stock-to-flow’s various incarnations call for a Bitcoin price of anywhere between $100,000 and $576,000 by the end of the current halving cycle in 2024. BTC/USD exactly hit the original model’s daily prediction — $23,562 — on Thursday.

Bitcoin stock-to-flow chart as of Dec. 17, 2020. Source: Digitalik

Erb: Bitcoin “fair price” is $12,000

To the chagrin of its skeptics, a rapidly increasing number of institutional financiers are beginning to share this view — and putting their money where their mouth is to prove it.

This week, One River Asset Management revealed a plan to up Bitcoin and Ether (ETH) exposure to over $1 billion by early 2021. Guggenheim, which reserved the right to allocate part of its own capital to BTC, now says a fair value for Bitcoin is $400,000 — 1,600% higher than the all-time high seen on Thursday.