According to CryptoPotato, with Bitcoin maintaining its value above $40,000 for over a month, previously dismissed pricing models have resurfaced. Stock-to-flow (S2F) creator PlanB stated that when he wrote the S2F article predicting a $55,000 Bitcoin price, people thought he was crazy. He added that the S2F model currently forecasts a top price of $532,000 after this year's halving, which some still consider impossible. MN Trading CEO Michaël van de Poppe commented that such a price is not impossible, especially with institutions entering the market.
The stock-to-flow model, first published in March 2019, examines the relationship between supply production and the existing stock, essentially determining Bitcoin's value through scarcity. The latest Bitcoin 200-week moving average and realized price chart, which closely resembles the S2F chart, show prices above the two indicators and on the verge of entering the bull market zone. LookintoBitcoin founder Philip Swift reported last week that BTC prices had returned to the S2F line, revalidating the price prediction model.
In a recent video, PlanB stated that the model value is currently between $50,000 and $60,000, with prices just below it. He believes that in the next 3-4 months leading up to the halving, Bitcoin prices will rise further towards the $50K to $60K range. However, he added that the price will not increase immediately after the halving but will experience a slight lag. The model has faced criticism in the past for its overly optimistic price predictions. In 2021, it predicted a $135,000 BTC price by year's end, but Bitcoin only reached $69,000 at the peak of its last cycle in late 2021. In the short term, Bitcoin prices are retreating, with a 1% dip on the day to $43,577 at the time of writing. The $44K to $45K zone has been a strong resistance for the past month. However, a positive decision from the US Securities and Exchange Commission regarding spot Bitcoin ETF approvals this week could push the asset higher.
