Since its inception in 2009, Bitcoin has fundamentally changed people's understanding of money, achieving for the first time a fully decentralized, transferable, highly transparent, and predictable form of digital currency. As the absolute leader in crypto assets, Bitcoin broke through the $69,000 mark in November 2021, attracting the attention of countless investors with this spectacular surge. However, Bitcoin's rise has not been smooth sailing; it is characterized by cyclical bull and bear markets, which have caused significant difficulties for investors trying to time the market. Against this backdrop, the Stock-to-Flow (S2F) model was born, providing investors navigating the waves of Bitcoin investment with a price trend analysis framework based on the principle of scarcity.
Deepen understanding of Stock-to-Flow: The mathematical model of Bitcoin scarcity
The S2F model is essentially a set of quantitative