The following is a guest post by Rajagopal Menon, the Vice President of WazirX.
Come the bull market, cometh the models to predict the price of Bitcoin. In the last bull market in 2021, the Stock-to-Flow (S2F) model was the flavour of the season. This model, created by Plan B, assessed asset scarcity by comparing stock to annual production. Applied to Bitcoin, the S2F model emphasised its ‘digital gold’ potential and provided scarcity-based, long-term price forecasts. However, the S2F model faded in the crypto winter in 2022.
But fear not, in the current bull run, there’s a new model in town – the Power Law Model, claiming to predict the price of Bitcoin with remarkable accuracy.
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