Bitcoin (BTC), lately priced at $16,676, is surely farther than the hallowed target price hyped by the Stock-to-Flow (S2F) models. The latest BTC/USD data shows pathetic deviations from planned price growth to unseen lows. The price suppression of BTC hastened in the aftermath of the FTX scandal and new projection models suggest the bearish trend is tightening.
As of 7.05 am, November 20, Bitcoin price is $16,701.11, a change of 0.33% over the past 24 hours. So far this year, bitcoin has seen a dip of -63.86%.
S2F model forecasts are under criticism as fantasy projections are out of sync with the ground reality regarding bitcoin price. If all the factors governing the S2F calculus had worked, bitcoin must have been trading above $72,000 as on November 19.
Commenting on the bitcoin price fall, leading economist Peter Schiff noted that the reality is bitcoin still has a long way to go to perfect its fall and tranquil at around $10K, perhaps the real price of bitcoin. He also cautioned that the bulk of the sell-off is yet to start.
In his tweets, Schiff also reacted to the recent performance of Grayscale’s bitcoin trust (GBTC) and said, GBTC’s 43% discount to NAV reflects that bitcoin is already trading below $10K. “I think this is the real price of bitcoin as when you sell GBTC you get paid real cash.”
To get cash for bitcoin in place of tether, there is a huge discount to suffer citing defense to his argument that bitcoin’s real price is hovering at $10k.
Many short-term projections are also showing the widening of bearish signs on the king coin including the Spent Output Profit Ratio (SOPR), which hit the lowest on November 19, since March 2020.
