Bitcoin's Value Surges as Stock-to-Flow Model Predicts Bullish Future

IconCryptoNewsTerminal Staff11 Jun, 2024

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Bitcoin's Value Surges as Stock-to-Flow Model Predicts Bullish Future

Jurrien Timmer, Global Macro Chief at Fidelity Investments, a leading U.S. asset manager, recently discussed Bitcoin's (BTC) value and its potential future. Timmer highlighted the Stock-to-Flow (S2F) model, created by PlanB, which measures the ratio of a stock to the new production per unit of time. The S2F ratio for Bitcoin is calculated by dividing the total amount of Bitcoin ever mined minus the amount that has been burned by the total amount of Bitcoin mined in the past year. Timmer explained that while the S2F ratio for gold has remained relatively stable, the S2F ratio for Bitcoin has increased exponentially. This indicates that Bitcoin's value is expected to continue to rise over time. The S2F model has been used to predict Bitcoin's price movements with impressive accuracy in the past. Timmer's comments echo the bullish sentiment expressed by other industry experts. As Bitcoin continues to gain recognition as a legitimate investment asset, its value is expected to continue to grow. The S2F model provides further support for this optimistic outlook, suggesting that Bitcoin's value is poised for significant gains in the future.

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