Legendary Stock-to-Flow (S2F) model gets an update, predicts BTC return to record prices

For a long time, ordinary crypto fans like you and me have been checking with the famous price model from anonymous analyst PlanB. His Stock-to-Flow (S2F) model for predicting bitcoin rates successfully predicted the price for a long time, becoming legendary. But in the middle of last year it broke down. Is the S2F model dead now?

Financial analyst and director of global macroeconomics at Fidelity Investments Jurrien Timmer suggested his upgrade for the S2F. And now the model is working again! 

We have studied this model and now bring both good and bad news for all bitcoin fans.

How was the S2F reanimated?

Timmer based his calculations on the popular Stock-to-Flow (S2F) model. To better scale the model over time, he applied an S-curve identical to the adoption of cell phones. It is believed that crypto is growing at the same rate as the Internet once did, but Timmer found that the pattern of cell phones more accurately describes the adoption of blockchain.

So what did we get out of it?

First, the good news.

• This year we’ll still be back at bitcoin’s coveted All-Time High (ATH) of $60k.
• The price of $100k per 1 BTC predicted by the original model is still in effect, but Timmer predicts that won’t happen until 2025.

And now for the bad news.

The model shows that bitcoin could temporarily fall to $25k before rising.

Of course, no one knows what will actually happen in the future…it’s just a model, one of many. But it is certainly worth keeping these numbers in mind.