The Stock-to-flow (S2F) model is at a point where its forecast for BTC price can be quickly disregarded.
PlanB, the one that brought forth the S2F model has said he is no longer confident about what he said earlier concerning where BTC’s price will land later this year.
The model, although being reputed for its accurate BTC predictions in the past years, is now being questioned by its followers on Twitter.
Plan B took to Twitter four days ago to sample followers’ opinions on their expected BTC prices for the end this year. He matched their responses with what was predictable in March during the price rally.
Out of 124,595 people that responded to the survey, over 51,000 said BTC cannot go past $100,000 this year, thereby making the S2F model look like a liar. Compared to the March poll, this is two and a half times more than those who disagreed with the $100,000 prediction.
Plan B further revealed that he gets doubtful about his prediction anytime Bitcoin’s price drops hard. Nevertheless, he praised his model for being accurate from March 2019 through September 2020.
According to Preston Pysh who started The Investors Podcast Network, the model is not to be blamed because the market is reacting to some news which were never expected.
The models typically makes its prediction by considering factors on ground such as the amount of BTC in circulation and how much BTC is in reserve. According to Plan B, BTC should be around $288,000 by 2024.
At the moment, BTC has improved over the last 24 hours gaining more than 6% to trade at $34,600+. Its highest price this year can be traced back to April 14 when it registered $64,800.
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