Stock-to-flow is a measure of where Bitcoin should go based on its existing supply — the stock — versus the “new” Bitcoins that enter circulation, or the flow. The resulting ratio determines the expectations, which call for BTC/USD to hit $100,000 at some point in 2021.
Prior to May’s block reward halving, which should catalyze price growth, PlanB’s model calls for substantially lower average readings of below $10,000.
At present, the average of the 10-day and one-year stock-to-flow values is around $7,600 — less than $200 below the spot price at press time.