{"id":416250,"date":"2020-02-27T17:00:42","date_gmt":"2020-02-27T17:00:42","guid":{"rendered":"https:\/\/wncen.com\/?p=416250"},"modified":"2020-05-21T08:24:46","modified_gmt":"2020-05-21T08:24:46","slug":"bitcoin-halving-stock-to-flow","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-halving-stock-to-flow\/","title":{"rendered":"Pre-Halving Rally: Bitcoin Just Bounced From Stock-to-Flow Baseline"},"content":{"rendered":"

Since the start of 2020, talk of the upcoming Bitcoin halving<\/a> has caused the first-ever cryptocurrency and the rest of the crypto market to skyrocket out of control. <\/span><\/p>\n

It\u2019s only this past week where a pullback occurred, caused by coronavirus-related market-wide panic<\/a>. But despite the selloff, Bitcoin remains bullish, bouncing off the stock-to-flow baseline that suggests the asset\u2019s value will rise exponentially after the halving this May.<\/span><\/p>\n

Bitcoin’s Halving Is on the Horizon<\/h2>\n
There are few narratives that surround Bitcoin<\/a> that have as loud of an echo chamber as the upcoming halving scheduled for this coming May 2020.<\/span><\/p>\n
The crypto market has been anxiously awaiting the halving since the crypto market downtrend first began, as it is expected that the reduction in Bitcoin supply caused by the halving, will cause an imbalance of supply and demand that causes prices to surge.<\/span><\/p>\n
Related Reading | Bitcoin To Explode By 80% Before Halving According to Past Cycle Comparison\u00a0<\/a><\/strong><\/em><\/p>\n
Each pre-coded halving reduces the block reward miners receive by half, hence the appropriate name of the event.<\/span><\/p>\n
Because much of Bitcoin\u2019s value is based on its digital scarcity, the event is especially notable.<\/span><\/p>\n
It\u2019s so notable, that a stock-to-flow model<\/a> has been developed to track Bitcoin\u2019s price progression based on that scarcity.<\/span><\/p>\n
This model is highly cited throughout the crypto industry and even in mainstream finance, and points to Bitcoin<\/a> reaching prices of $55,000 following the halving.<\/span><\/p>\n

First-Ever Cryptocurrency Bounces From Stock-to-Flow Baseline<\/h2>\n
The model includes a 10-day and one-year baseline moving average, along with another moving average depicting the difference in actual price versus what the stock-to-flow model projects.<\/p>\n
According to that projection, Bitcoin<\/a><\/span> just bounced perfectly at the 365-day baseline.<\/p>\n
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When in doubt, zoom out. #Bitcoin<\/a> <\/p>\n
A few weeks before every halving, #Bitcoin<\/a> touched the #s2f<\/a> model price. This time it is no different.<\/p>\n
S2F 10D: $9.303
S2F 365D: $8.317
Average: $8.810<\/p>\n
Current Price: $8.811<\/p>\n
Chart:@digitalikNet<\/a>
Model:@100trillionUSD<\/a> pic.twitter.com\/r2tRvcQZLh<\/a><\/p>\n
— CryptoKea (@CryptoKea) February 27, 2020<\/a><\/p><\/blockquote>\n