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During these halving events, the reward for Bitcoin mining is halved, effectively reducing the rate of new supply entering the market. It is this scarcity that, according to the model, drives Bitcoin's price upward over time. An essential feature of S2F is its identification of four-year cycles, during which Bitcoin typically sees dramatic price increases, particularly following a halving event.
Predictions for Bitcoin's Price by 2025
Recent analyses of the stock-to-flow model suggest that the average price prediction for Bitcoin by 2025 could be around $500,000. Plan B posits that this figure can vary significantly, with the upper limit potentially reaching $1 million and the lower limit around $250,000, suggesting that substantial growth is possible in the coming years.