Fidelity, in its latest report, claimed that Bitcoin's stock-to-flow ratio will surpass gold after the next 2024 BTC halving. Despite the nature of this news, BTC's demand showed no signs of recovery.
So, what does it mean for Bitcoin to have a higher stock-to-flow ratio than Gold? Well, the stock-to-flow ratio assesses the ratio of the existing supply and new production or incoming supply. In other words, it is used to highlight the level of scarcity.The report suggested that Bitcoin will be more scarce than gold after the 2024 Bitcoin halving. This could be a major turning point as far as demand is concerned. The report further pointed out demand drivers that highlight.
We have already seen significant regulatory intervention this year but there was one unexpected factor that has been shortlisted. According to the report, low-interest rates might also be a factor. So far higher interest rates have had a significant impact on the price of BTC and this will continue well into the future.
The PlanB’s infamous stock-to-flow model has been the victim of scrutiny in the past for not being as reliable as expected. As such, there might be some friction against this new S2F prediction. There are many factors to consider that may have an
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