Chinese expert believes BTC will reach $78,000 by the end of 2022

Chinese crypto-currency expert Colin Wu, who is also a journalist, said that in his opinion, by the end of 2022, the main digital asset could rise to $78,000. He came to these results as a result of studying the Bitcoin chart and the Stock To Flow model.

Stock To Flow is a model developed by anonymous users under the pseudonym PlanB, which aims to forecast bitcoin based on the scarcity of this cryptocoin and the difficulty of mining cryptocurrency. In the course of how the amount of BTC mined decreases over time due to the halving, which takes place every 4 years, the amount of reserves to flow increases. In this regard, the supply entering the market is constantly reduced, which leads to an endless deflationary process. It is this process that displays the Stock To Flow ratio.

The model is similar to the pattern in which the estimated gold rate works. Although Stock To Flow has an army of haters and has gathered a lot of criticism around it, such a model still exists.

Due to the study of the Stock To Flow chart and the history of the BTC price, at the moment the price of the main cryptocurrency is too different from what the actual price tag of Bitcoin should have at the moment. The difference between expectations and reality, according to him, is now too great and is essentially a record in the entire history of BTC. According to the analyst, if you believe the Stock To Flow chart, then the price of bitcoin should be $78,280 at the time of December 31, 2022.

Such a statement, like the entire Stock To Flow system, caused a storm of emotions among most users. They took to Twitter to debunk the Chinese analyst's speculation. Given today's events, Bitcoin, according to them, cannot grow in 1 month to $78,000. Another part of the audience said that Stock To Flow forecasts almost never come true, and for this reason, there is no point in paying attention to the S2F chart at all.