Does a Stock-to-Flow ratio of 580 confirm extreme scarcity for BTC?
At the time of writing, Bitcoin’s Stock-to-Flow (S/F) ratio surged to 580—a level well above historical averages.
This metric measures the relationship between Bitcoin’s circulating supply and its annual issuance, and such a sharp increase typically points to tightening supply and long-term bullish potential.
However, the elevated reading may be skewed by factors like reduced miner selling or short-term fluctuations in on-chain activity.
While a high S/F ratio supports the narrative of a looming supply shock, it’s not a standalone signal for price appreciation.
Sustained price growth still depends on rising demand and broader market participation.
Without renewed investor interest and increased activity, elevated S/F levels alone may fall short of sparking immediate upside momentum.
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