Bitcoin (BTC) climbed to fresh local highs on June 3 after US stocks cut losses. The mood among stocks was more solid during the June 2 session as the S&P 500 retraced most of the levels it lost last month. The Nasdaq Composite Index rose 2.7 percent. Meanwhile, Fidelity Global Macro Director Jurrien Timmer shared his view on the famous stock-to-flow model widely used by cryptocurrency investors and enthusiasts. Here are the details…
Fidelity executive shared his views on the famous Bitcoin model
The metric is one of the most widely used tools for determining the next high or low. But Timmer has his own opinion on this matter. The expert suggested a better way to approach stock and adoption data. The analyst’s main problem with the current S2F model was that scarcity alone could not drive the price. Scarcity cannot be used alone to increase an asset’s value if it is not adopted, used, or otherwise used.
So Timmer, mobile adoption created an S-curve model that mimicked the curve. He suggested that this model will determine Bitcoin’s future adoption rate and overall network growth. Timmer also added that the model’s accurate prediction of Bitcoin’s meteoric growth may be correct due to the massive cryptocurrency adoption rates, adding that he doubts the model will work from now on when the market cap of BTC has soared to almost $600 billion.
Three patterns show next levels for BTC
Timmer suggested taking Bitcoin’s supply curve into account to create a more conservative trajectory for price growth. The result retrospectively captured BTC price action more accurately than raw S2F predictions. Timmer took into account the supply limitations currently available in Bitcoin and added them to the chart. According to the expert, the supply projection will help determine the exact growth and adoption rate of Bitcoin.
According to the expert, according to three different models, Bitcoin will most likely rise to $ 63.000. In the best possible scenario, we will see Bitcoin rise to $144,000. In this case, Bitcoin’s move would be an almost exact replica of the mobile phone S-curve demand pattern. As we reported on Kriptokoin.com, the stock-to-flow model, which did not realize the end-of-year forecast of $100,000 in 2021, has been increasingly left on the sidelines due to criticism from its creator, PlanB. PlanB stated that the May close was Bitcoin’s lowest level since December 2020. At the time of writing, Bitcoin (BTC) is changing hands at $30,105, up 0.5 percent. In the past 7 days, it has increased by 2.8 percent.
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