Bitcoin (CRYPTO: BTC) is undervalued according to the stock-to-flow (S2F) model it has been on since mid-May.

What Happened: According to Glassnode’s S2F deflection chart, Bitcoin is currently worth only 51% of what it should be according to the S2F model. This is the lowest deflection since mid-May, when the value of Bitcoin deflected to become worth well under one-third of what it would expect it to be at $32,000.

The report follows late-July data showing at the time Bitcoin possibly became the most undervalued according to S2F that it has ever been, reaching a low of about 0.27 of the value it was estimated to have.

Why It Matters: Bitcoin’s S2F model was released in March 2019 by a Twitter user and anonymous Dutch, investor Plan B, in an attempt to value the coin in a way similar to scarce assets, such as precious metals and limited commodities. Historically, every halving event anticipated a major bull run.

Such bull runs usually ended up with Bitcoin exceeding S2F’s price predictions.


Recent data also revealed that the percentage of Bitcoin addresses currently profiting off of their balance amounts to nearly 92.7% — a five-month high. 

Photo by Viktor Forgacs on Unsplash