RATE Group | Backtesting Bitcoin’s Stock-to-Flow Model Confirms 2020 Rally
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Backtesting Bitcoin’s Stock-to-Flow Model Confirms 2020 Rally

Backtesting Bitcoin’s Stock-to-Flow Model Confirms 2020 Rally

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The end of the year is usually a good time to review some price predictions for bitcoin. One model that has grown in popularity this year has been stock to flow and further research indicates that BTC price patterns are accurate.


Bitcoin S2F In Depth

The model was originally proposed by market analyst β€˜PlanB’ who modeled bitcoin price through scarcity earlier this year.

Stock to Flow has been described as a ration of the amount of a commodity held in inventories, or current circulation divided by the amount produced annually. It has been increasingly used for BTC price predictions as the halving in May will cut the supply and inflation in half which doubles the S2F ratio.

Dutch Linux administrator Rob Wolfram has expanded on the research delving deeper into stock to flow and…

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