Following the Stock-to-Flow (S2F) model, Bitcoin price is heading at $135,000 by the end of December 2021

By Selena On Aug 14, 2021

As the crypto market passed a $2 trillion valuation, the Bitcoin price surged more than 5% in the past 24 hours to surpass $47,500. As AZCoin News reported, this is the first time BTC has reached these levels in the past three months. Surprisingly, BTC follows the Stock-to-Flow (S2F) model developed by popular crypto analyst PlanB. Furthermore, with this situation, BTC is likely to head towards the $135,000 by the end of December 2021.

Bitcoin price precisely following the Stock-to-Flow Model, $135,000 coming by December?

According to popular crypto analyst PlanB, the father of the Stock-to-Flow (S2F), his prediction for the months following August shows that the BTC price is heading at $135K by the end of December 2021.

At this time, PlanB tweeted: “Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crackdown. There is also a more fundamental reason that we see weakness in June and possibly July. My worst-case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.”

Recently, PlanB updated its Twitter account, showing that BTC is still on track for August. Bitcoin price this month rose above $47,000.

Source: PlanB

Along with the current price increase, Bitcoin has also shown significant improvement in several on-chain metrics. Accordingly, on-chain data shows that Bitcoin miners have once again started with strong accumulation. Over the last month, the miner balances have been continuously rising, which is a healthy sign. It means miners are expecting a further surge in Bitcoin price and are not willing to book profits as of now.

Source: Glassnode

Furthermore, Santiment reported that Bitcoin supply on exchanges has dropped to a two-week low. This is an encouraging sign and suggests that more BTC is going to cold wallets. The Bitcoin Supply at exchanges has fallen to a two-month low.

Source: Santiment

Glassnode has also made a similar observation with the Bitcoin exchange outflows. “Bitcoin has continued to flow out of exchanges in August at a rate between 75k and 100k per month. This magnitude of outflow is similar to the period between 2020 and Q1 2021, where heavy accumulation and the GBTC arbitrage trade dominated”, it tweeted.

All metrics are currently in favor of Bitcoin, and we can see it going to $50,000 soon if things go well. However, with the recent altcoin rally, Bitcoin Dominance in the overall crypto space has dropped by 2% points and is currently at 44.8%.

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