The Stock-to-Flow (S2F) model created by PlanB is one of the most well-known price prediction apparatuses in the Bitcoin space. It forecasts the long-term price trend of Bitcoin by weighing two main factors: the amount of BTC in existence (the stock) versus the amount of newly mined coins entering the market (the flow).
Thus far, the model has been eerily accurate. Bitcoin closed February 26% above the model’s projected price and remains on pace to hit the model’s end-of-year target of $288K. With Bitcoin currently trading at around $56K, it would need to increase over 400% between now and December.
Bitcoin prices were carving out fresh records Wednesday but where the cryptocurrency heads from here is an open question.
A single bitcoin BTCUSD, 8.34% hit a record high at $51,735.38 earlier in the day, according to CoinDesk and predictions see the world’s No. 1 crypto doubling before year-end, while some make the case that the virtual asset’s current rally to all-time highs is “unsustainable.”
On Wednesday, Anthony Scaramucci, founder of SkyBridge Capital, and newfound investor in cryptos, predicted that bitcoin would hit $100,000 by year-end, but suggested that investors be cautious about buying digital assets. The SkyBridge Bitcoin Fund LP has about $500 million in bitcoins, Scaramucci said.
“I do think we see $100,000 in this coin before year-end,” Scaramucci said. “It’s just a supply and demand situation,” he told the business network’s “Squawk Box,” referring to the perceived increased demand for bitcoins from institutions and waning supplies of the asset.
