Stock to Flow Ratio

The Stock to Flow (S/F) Ratio is a popular model that assumes that scarcity drives value. It is defined as the ratio of the current stock of a commodity and the flow of new production, and is applied across many asset classes.

Bitcoin's price has historically followed the S/F Ratio, making it a popular model for predicting future Bitcoin valuations.

Stock to Flow is defined as the ratio of the current stock of a commodity (i.e. circulating Bitcoin supply) and the flow of new production (i.e. newly mined bitcoins).

Stock to Flow Deflection

The Stock to Flow (S/F) Deflection is the ratio between the current price of an asset and its Stock to Flow Ratio. It is used to determine whether an asset is overvalued or undervalued in relation to its scarcity.

If deflection is ≥ 1 it means that the asset is overvalued according to the S/F model. If deflection is <1, the asset is undervalued according to this model.

Stock to Flow Ratio

The Stock to Flow (S/F) Ratio is a popular model that assumes that scarcity drives value. It is defined as the ratio of the current stock of a commodity and the flow of new production, and is applied across many asset classes.

Bitcoin's price has historically followed the S/F Ratio, making it a popular model for predicting future Bitcoin valuations.

Stock to Flow is defined as the ratio of the current stock of a commodity (i.e. circulating Bitcoin supply) and the flow of new production (i.e. newly mined bitcoins).

Stock to Flow Deflection

The Stock to Flow (S/F) Deflection is the ratio between the current price of an asset and its Stock to Flow Ratio. It is used to determine whether an asset is overvalued or undervalued in relation to its scarcity.

If deflection is ≥ 1 it means that the asset is overvalued according to the S/F model. If deflection is <1, the asset is undervalued according to this model.