The BTC stock-to-flow (S2F in short) method is a price prediction model popularized by PlanB. S2F is based on the ratio between the stock (current supply) and the flow (annual production).
It’s often thought that PlanB is the creator of the S2F model itself, however, that isn’t the case. The method has been used in the past for other assets like gold and silver, but PlanB was the first to implement it for Bitcoin. In this way, PlanB is the creator of the Bitcoin S2F chart, although not the core concept itself.
The stock-to-flow value of an asset like BTC shows how scarce it is. The model relates this value with the price and gives a prediction based on that.
Here is the latest price chart based on the S2F model for BTC:
As is visible in the above chart, the method has been remarkably close to the real thing in its predictions. Although there have been a few points of deviation, the price has always eventually aligned back on the curve.
At the start of the month, PlanB listed out their Bitcoin targets in a Tweet. Earlier, the analyst had targets of above $47k for August and above $43k for September, both of which the tweet confirms have been met.
Next targets for the S2F popularizer include more than $63k for October, above $98k for November, and finally at least $135k for December.
Reaching $100k by December will be a make or break moment for the famed price prediction model as the month is only a couple of months away now. At the moment, BTC’s price floats around $47.6k, up 10% in the last seven days.