S2F Alternative Bitcoin Rainbow Chart Says BTC Is Currently on “Fire Sale”

The highly cited stock-to-flow model, designed to assign a theoretical value to Bitcoin based on the asset’s hard-coded digital scarcity, may not be mathematically sound, according to the CIO of Arcane Assets, Eric Wall.

Wall not only claims the S2F model is flawed, but has offered up an alternative, dubbed the Reddit Rainbow chart, that could potentially provide a far better model for predicting Bitcoin’s price trajectory.

Arcane Assets CIO Claims Stock-to-Flow Model Is Flawed, Math Invalidated

With the Bitcoin halving less than one month away, hope that the event produces bullish results has almost entirely faded from the cryptocurrency market, due to the impact the coronavirus has had on the economy, the stock market, and nearly everything else it touches.

As the pandemic outbreak spiraled out of control, it prompted a mass sell-off that caused a record-breaking drop in Bitcoin and other cryptocurrencies.

Related Reading | Bitcoin Shows Ideal Set Up For Epic Rally: Stock-to-Flow…