Bitcoin is predicted to reach $ 5 million

As the bitcoin halving approaches, investors and analysts are speculating about the potential impact on the price of BTC $75,189.24 Mezo Wrapped BTC -0.27% Market capitalization $0.1 billion VOL. 24 hours $0.64 billion due to the increase in its shortage. Among several methods of forecasting the price of bitcoin, the Bitcoin Stock-to-Flow (S2F) model stands out.

Popularized by X user PlanB, the S2 °F model relies on traditional stock-to-flow ratios used in commodity markets such as gold and silver, offering an intriguing forecast of the future value of bitcoin. According to the expert, bitcoin will reach an impressive $ 5 million.

«This is basically all you need to know, plus a wide margin of error, of course. By the way, halving 5 is halving 6: the average price is $ 5 million,» PlanB said.

Applying the S2 °F model to bitcoin has been a topic of intense debate. While it fits some historical price trends, critics argue that it is too simplistic. S2 °F neglects other market dynamics such as demand, technological advances, regulatory changes, and broader economic factors.

«The inventory-to-flow ratio doesn’t look good right now. I know it’s impolite to gloat and all that, but I think that financial models that give people a false sense of security that the number of shares will go up are harmful and deserve all the ridicule they get,» said Ethereum co-founder Бутерін" href="https:>Vitalik Buterin.

In January, PlanB shared his confidence that bitcoin would reach the six-figure mark this year. One of PlanB’s predictions is that bitcoin will reach $ 100,000 per BTC in 2024. «My forecast for 2024 has not changed since October 6, 2022, when bitcoin was worth $ 20,000 ,» the expert said, publishing his own «task list» for the market flagship.