Bitcoin (BTC) Stock-to-Flow Model Dips 62% in January 2022

On-chain analysis from PlanB shows that Bitcoin’s (BTC) price closed at $38,491 in January 2022, which is 62% below its targeted stock-to-flow model (S2F).

This synergy represents a brand new stock-to-flow model phenomenon that the flagship currency Bitcoin has recorded in the market so far. The current situation of the BTC S2F model and how it appears in the digital finance space is considered somehow not appreciated by traders.

The PlanB BTC S2F tweet eventually raised the bar for some level of reactions among the crypto Twitter netizens. Many reacted emotionally, while others also emphasized that they cannot take the Bitcoin stock-to-flow model (S2F) into consideration since it triggers Fear, Uncertainty, and Doubt (FUD) symptoms in the crypto space.

Furthermore, traders see the Bitcoin stock-to-flow model’s downsides from several different angles and perspectives. As brought by this, they attributed BTC’s 62% S2F model as a direct influence by the US dollar movement.

On the other hand, Bitcoin’s price is at $38,561.08, up 4.20% with a 24h trading volume of over $20 billion on CoinMarketCap, at the time of writing. However, the threshold value of the BTC price somehow correlates slightly to the $38,491 figure it closed in January.