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A researcher debunks Stock-to-Flow model, likens Bitcoin to a ‘tech stock’ By Cointelegraph

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A researcher debunks Stock-to-Flow model, likens Bitcoin to a ‘tech stock’

A report authored by the research team of ByteTree purports to debunk one of the most popular (BTC) valuation models — Stock-to-Flow. The model provides a very optimistic forecast for Bitcoin, claiming that a year from now we should see price levels above $100,000.

Source: Glassnode.

BytTree’s co-founder and chief investment officer, Charlie Morris, dedicates the entire fourth chapter of the report to “debunking” it. The stock-to-flow models have been applied for decades to forecast the price of commodities like gold and silver. Stock is the existing supply of the asset and flow is the additional new supply that is being generated. Applied to Bitcoin, it hinges on the fact that its inflation or flow will be getting progressively smaller, while the stock-to-flow ratio will be getting progressively higher. Thus, producing “sky is the limit” forecasts for the price.

Source: ByteTree.com.
Source: Glassnode.

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Cryptocurrency

BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA By Cointelegraph

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Price analysis 10/26: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA

Morgan Creek Digital co-founder Anthony Pompliano highlighted data from Santiment, which showed that the 30-day rolling correlation between (BTC) and the is 0. Pomp stressed that the lack of correlation shows that Bitcoin is a store of value.

Along with that, Bitcoin has also outperformed most traditional asset classes such as gold, the S&P 500, , and the U.S. dollar since the sector wide crash that took place in March when coronavirus fears reached a peak.

Daily cryptocurrency market performance. Source: Coin360