DEXCEX

Bitcoin Stock-to-Flow Model

Stock-to-Flow (S2F) values Bitcoin purely on scarcity. It's the same metric used to think about gold and silver — and it's the most controversial Bitcoin model ever published.

Loading BTC history…

Formula

S2F = circulating supply / annual new issuance

The original PlanB model fits: price ≈ 0.4 × S2F^3 — meaning each halving (which doubles S2F) should multiply price by ~8×.

Bitcoin's S2F across halvings

  • 2009 – 2012
    ≈ 1.8
    50 BTC block reward — Pre-halving — abundance
  • 2012 – 2016
    ≈ 8
    25 BTC block reward — Post-1st halving
  • 2016 – 2020
    ≈ 25
    12.5 BTC block reward — Post-2nd halving — silver-tier scarcity
  • 2020 – 2024
    ≈ 56
    6.25 BTC block reward — Post-3rd halving — gold-tier scarcity
  • 2024 – 2028
    ≈ 119
    3.125 BTC block reward — Post-4th halving — above gold

For reference: gold ≈ 60, silver ≈ 22. After the 2024 halving, Bitcoin became the scarcest monetary asset on the planet by this metric.

Why critics call it broken

  • The 2021–2022 cycle peaked far below the model's projected $100k+ band, then collapsed to ~$15k.
  • S2F treats Bitcoin's value as a function of supply alone — ignoring demand entirely.
  • The original regression had only 4 data points (one per halving), making the fit fragile.
  • S2FX, a follow-up cross-asset model, has performed even worse out-of-sample.

How to actually use it

Treat S2F as a narrative tool — useful for communicating the supply shock around halvings — not as a price target. Pair it with demand-side metrics like ETF flows, on-chain accumulation and the MVRV Z-Score.

Related