The price of Bitcoin is now at quite a distance from the target price according to the Stock to Flow model.
The latest data, derived from analytics platforms, shows that the BTC/USD exchange has already started deviating from the planned price growth to an extent that hasn’t been witnessed before. With the price suppression of BTC going on in light of the scandal of FTX, an already bearish trend has strengthened further.
This does put up several implications for the core aspects of the network of Bitcoin- notably miners, but some of the best-known metrics have also started experiencing the heat. One of the metrics would be S2F, which has been constantly witnessing its price forecasts come under increasing criticism and strain.
FTX Shouldn’t Impact Bitcoin’s Price Any Further
The model did enjoy immense popularity until the last all-time high of Bitcoin in the November of 2021 when the model used block subsidy having already halved events with the central element in plotting the exponential price growth throughout the years. This stock-to-flow model also accounts for some significant deviations in price- which implies that the current targets are far higher than the spot price provided.
According to S2F Multiple, the dedicated monitoring resource, Bitcoin should be simply trading at just around $72,000 on the 19th of November, with a multiple of -1.47. On the 10th of November, the multiple reached -1.5- which is a record negative reading in the lifetime of S2F- as a direct result of the impact of FTX hitting the market.
The creator of S2F, PlanB, is still quite unfazed about the utility of his creation, as he tweeted that although it feels like the world has ended, the collapse of FTX was simply a blip on the long-term radar.