April 25, 2024

Analysts predict growth of up to $70,000 based on S2F model

Analysts predict growth of up to $70,000 based on S2F model

Weiss Crypto specialists said that by 2021 the cost of Bitcoin (BTC) will reach 70 thousanddollars. The Stock-to-Flow model, which the main cryptocurrency has chosen, can talk about this. It involves measuring the ratio of the value of an asset to its annual growth. Even if the coin almost does not change the price tag, it remains promising for long-term investments.

S2F Model Reflects Potential Price Topsbased on the quantity of goods in circulation divided by the quantity produced each year. The model has traditionally been used to analyze the intrinsic value of precious metals such as gold and silver. For cryptocurrencies, this model was first applied by a well-known expert in the crypto community under the nickname PlanB.

“Although the concept is based on an excellent methodologyfrom the one used in the Weiss cryptocurrency cycle model, it is widely used in blockchain space. And now she is predicting a rally over the next 12 months or so. ”

$ 70,000 Bitcoin?

According to experts, while saving the modelStock-to-Flow cost of bitcoin will approach the mark of 50 thousand dollars by the end of this year. In January, a slight downward correction is possible, which happens almost every year. This will be followed by a return to positive dynamics, but it may end with an even stronger drawdown. If traders and investors survive the loss and will not withdraw funds from bitcoin, then by the middle of next year, the cost of the main coin will be about 70 thousand dollars.

Analysts predict growth of up to $70,000 based on S2F model

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Experts noted that throughout historyThe Stock-to-Flow model clearly reflected its growth and drawdown. The only factor that experts cannot predict is the external impact.

Bitcoin is now highly correlated with stock markets. At the beginning of the year, a certain relationship of the asset with gold was traced. Because of this, making forecasts on the cryptocurrency market has become more difficult.

“Long-term investors should study weaknessesthis asset to find the best entry points. Volatility in this case even works for the benefit of traders. If we are not talking about the resale of cryptocurrency, then now is the time to invest in it. If she continues to follow the trends of the Stock-to-Flow model, then very soon the current price tag of the asset will be considered an annual minimum. ”, - experts of Weiss Crypto told.

Experts called on traders to monitorthe issue of the US dollar, which also has a definite effect on bitcoin. Against the backdrop of Congress's attempts to stabilize the economic situation in the country, the US currency can expect higher inflation than the main coin will use.

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