S2F Model Points to $100,000 Bitcoin in 2023

Bitcoin is heading towards $100,000 by the end of next year, according to both the stock-to-flow model and the logarithmic regression, asserted the man behind them – PlanB. This comes despite the recent failures of the S2F and the analyst’s “worst-case scenario.”

$100K per BTC in 2023?

PlanB, the anonymous Twitter pseudonym behind the popular stock-to-flow model and its variations, recently posted another somewhat favorable prediction in terms of BTC’s price trajectory.

By tapping to both the S2F and the logarithmic regression, the analyst suggested that the primary cryptocurrency will reach a six-digit price tag by the end of 2023.

Both S2F and logarithmic regression point to $100K in 2023. pic.twitter.com/NHqoRpEmUl

— PlanB (@100trillionUSD) February 14, 2022

Later on, PlanB explained that he had compared bitcoin to other assets like gold, whose stock-to-flow ratio sits around 60 as its market cap is at $10 trillion and real estate. The latter’s S2F ratio is at 100, with a market cap ten times larger than gold’s.

As such, he concluded, “it would really surprise me if bitcoin will have a lower market value than gold after next halving when BTC S2F 100+.” The next halving is scheduled to take place in early 2024.

Previous Misses and Failures

The stock-to-flow model sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins in circulation. It started to gain a lot of traction among BTC bulls as it was quite accurate until recently and provided highly positive price predictions.

However, one of those forecasts envisioned bitcoin going to and beyond $100,000 by the end of last year, which obviously didn’t come to life. As such, the number of S2F critics increased.

PlanB had another model, which he called “floor model” or “worst-case scenario,” that showcased high accuracy for several months in a row. However, it was also broken in November and December of last year as it projected bitcoin prices of $98,000 for the former and $135,000 at the end of the latter.

Despite those misses, PlanB seems fairly certain that bitcoin will inevitably reach a six-digit price territory even if it takes a few more years than previously expected.