Bitcoin’s scarcity model hints at massive undervaluation

2023-11-8 16:15

Quick Take

Bitcoin’s Stock-to-Flow (S/F) Ratio, a model built on the premise that scarcity fuels value, appears to be regaining its predictive force.

Historically, Bitcoin’s price has moved in tandem with the S/F ratio, making it a potentially useful tool for predicting future valuations.

However, the model deviated from predictions around April 2021, during the bull market run. Interestingly, with the halving five months away, Bitcoin’s trajectory seems to have realigned with the S/F ratio. Although still $65,000 short of the model’s prediction, the trend indicates a positive direction.

Graph showing Bitcoin’s Stock-to-Flow ratio from 2010 to 2023 (Source: Glassnode)

The S/F deflection, measuring the divergence between the current Bitcoin price and the S/F model, suggests Bitcoin is still significantly undervalued. This is based on the model’s assumption that a deflection greater than or equal to 1 indicates Bitcoin is overvalued and vice versa. Notably, the only time Bitcoin was deemed more undervalued according to this model was during the FTX collapse in 2022.

Graph showing the Stock-to-Flow deflection from 2010 to 2023 (Source: Glassnode)

The post Bitcoin’s scarcity model hints at massive undervaluation appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 97003.84 (-0.05%)
Объем 24H $40.988b
Изменеия 24h: -0.37 %, 7d: -5.57 %
Cегодня L: $96041.94 - H: $97458.26
Капитализация $1920.639b Rank 1
Цена в час новости $ 35317.57 (174.66%)

bitcoin ratio model scarcity tandem moved price

Источник: cryptoslate.com

bitcoin ratio → Результатов: 126


Фото:

Decline in ETH/BTC ratio shows Bitcoin’s rising market dominance

The Ethereum (ETH) to Bitcoin (BTC) ratio (ETH/BTC) is a pivotal metric, offering insights into the relative strength and market dominance of the two largest cryptocurrencies. Representing the value of one Ethereum in terms of Bitcoin, the ratio serves as a critical tool for investors and analysts to gauge the comparative performance and sentiment towards […] The post Decline in ETH/BTC ratio shows Bitcoin’s rising market dominance appeared first on CryptoSlate.

2023-11-30 18:00


KuCoin’s Futures Platform KuMEX Launches a Lite Version

KuMEX, the Bitcoin futures platform developed by KuCoin, today announced the launch of a Lite version, which not only focuses on core trading experience by simplifying the overall interface but also provides analytic tools such as a long-short ratio and revenue calculator to help newcomers to the crypto futures market better predict market trends and... The post appeared first on NewsBTC.

2020-1-8 16:00


Фото:

Key indicator shows its good time to accumulate as Bitcoin price touches $7800

As the Bitcoin price surpassed $7,500 on Nov. 27th, a key long term trend indicator showed that it is still a good period to accumulate BTC. Since the Ecoinometrics team released its latest “Daily Bitcoin Mayer Multiple Report” citing the Mayer multiple, a ratio of the Bitcoin price to 200-day moving average, the Bitcoin price […] The post Key indicator shows its good time to accumulate as Bitcoin price touches $7800 appeared first on CryptoSlate.

2019-11-29 17:57


Фото:

Bitcoin Price: BTC’s Explosive Rally On-Hold Until Halving

Bitcoin price might move in a sideways trend until the next halving. Then, it might finally explode to new all-time-highs, according to a Twitter user who applies the stock-to-flow ratio model. Bitcoin Price Pattern Points to New ATH After Halving Previously, we reported on bitcoin price forecasts that used the stock-to-flow (SF) ratio model, which was initially proposed by Twitter-based crypto and commodities analyst PlanB.

2019-11-6 15:30


Bitcoin stock to flow value to double up in the run-up to the halving

Stock to flow ratio is used to measure the scarcity of an asset: gold has the highest value of 62 followed by Bitcoin at 25. These values have a meaning to it as well: gold’s stock to flow value of 62 means that it would take 62 years to mine the same amount of gold […] The post Bitcoin stock to flow value to double up in the run-up to the halving appeared first on AMBCrypto.

2019-10-5 20:30


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Tornado Cash’s legal win prompts co-founder Roman Storm to fight charges

Roman Storm, developer of the crypto-mixing platform Tornado Cash, has filed a motion to dismiss the criminal charges filed against him by US authorities. His request follows a significant legal decision by the Fifth Circuit Court, which ruled that sanctions imposed by the US Treasury’s Office of Foreign Assets Control (OFAC) on Tornado Cash’s immutable […] The post Tornado Cash’s legal win prompts co-founder Roman Storm to fight charges appeared first on CryptoSlate.

Donald Trump reportedly plans to leverage $200 billion US Treasury fund for Bitcoin reserves

US President-elect Donald Trump is reportedly considering an Executive Order to establish a Strategic Bitcoin Reserve (SBR), according to Satoshi Act Fund founder Dennis Porter. On Dec. 15, Porter shared on social media platform X (formerly Twitter) that Trump plans to use the Treasury’s Exchange Stabilization Fund (ESF) to implement this strategy after his inauguration.

Coinbase stock and app rankings soar amid crypto market resurgence

Coinbase, the largest crypto trading platform based in the US, has seen its stock climb above $300—a milestone not reached since November 2021. Data from Yahoo Finance shows that the jump reflects a roughly 11% increase at market opening and coincides with Bitcoin’s recent surge above the $83,000 mark.