The Bitcoin market’s recent bull run has raised questions about the timing of the market peak. Data analysis by popular trader PlanB suggests a correlation between Bitcoin’s price and the stock-to-flow ratio, a measure of scarcity. According to the model, we are still in the early stages of a bull market, with the top potentially arriving before the end of this year. The model is based on Bitcoin’s halving cycles, a process that reduces the reward for mining new coins by half approximately every four years.
However, experts warn that predicting the exact timing of the market peak is challenging. They suggest that due to the dynamic nature of the crypto market, relying solely on the stock-to-flow model can be risky. Crypto investors should also consider other factors such as market sentiment, trading volume, and regulatory news. While PlanB’s model provides a valuable insight, it should be used as one of many tools in a well-rounded investment strategy.
