Bitcoin’s halving is now in the past, and stock-to-flow formulas predict that the asset is ready to rocket out from current lows. But that’s yet to happen, and the crypto market is even crashing currently.
Here’s how this bull market is shaping up to have much “different” momentum this time around, according to one pseudonymous trader. According to the analyst and their theory on lengthening Bitcoin cycles, the slower momentum matches up precisely. Is this a sign that the stock-to-flow model is nonsense, and instead cycles are lengthening regardless of the halving?
Bitcoin Bull Markets Are Losing Momentum, But That’s Not Bad
The cryptocurrency market on daily and weekly timeframes has had plenty of momentum behind it, helping to propel Bitcoin to a new 2020 high. Ethereum and most other altcoins followed, surging and setting new local highs.
But a selloff has begun, suggesting that the ultra-hot crypto market will be cooling off again for some time. If prices drop much further or remain sideways for an extended period, it would seriously call into question all supply-based theories such as the highly-referenced stock-to-flow model.
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The S2F model created by Plan B looks at the cryptocurrency’s digital scarcity and block reward reductions called halvings that occur every four years.
The idea is that as supply is reduced from each halving, the value