💰 One way to predict cryptocurrency behavior has become the Bitcoin Stock-To-Flow (S2F) prediction model. We tell you how the tool works!

The tool is based on calculating the possible value of an asset based on the rate of new BTC inflows to the market and the stock of coins not yet mined.

✅ The point of S2F is to predict the future BTC rate, based on the assumption that the price of the cryptocurrency will inevitably rise against the background of the principle of bitcoin scarcity formation embedded in the coin's code. Here are the two main pillars on which the model is built:

1. Bitcoin issuance is limited. A total of 21 million coins will be mined.

2. Halving reduces the rate at which coins flow into the market. Meanwhile, the cryptocurrency's adoption rate and popularity increases.

🔼 Here's how the features of bitcoin code and the behavior of financial market participants affect the cryptocurrency's rate (based on the history of BTC observations):

1. Halving triggers bitcoin growth cycles, in which the coin, roughly 480-520 days after the mining reward decreases, updates an absolute maximum.

2. Decrease in the reward for mining, due to a decrease in the inflow of bitcoins to the market on the background of increasing user interest in cryptocurrencies, forms a shortage of BTC. Increasing demand for bitcoin amidst decreasing supply pushes the coin's exchange rate upwards.