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New Bitcoin Stock-to-Flow Chart Shows Bearish Periods Precede Halvings

Published 10/28/2019, 10:54 AM
Updated 10/28/2019, 11:01 AM
© Reuters.  New Bitcoin Stock-to-Flow Chart Shows Bearish Periods Precede Halvings
BTC/USD
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Since Bitcoin’s (BTC) creation in 2009, the digital asset has undergone a halving event every four years, cutting the number of coins constantly entering the ecosystem in half, making it a deflationary asset.

Based on its hard-coded scarcity, and in line with its halvings, Bitcoin has risen dramatically in price over the years, giving the asset a high stock-to-flow ratio. When graphically depicted with deviation bands, Bitcoin historically has tested band levels below its median prior to halving years.

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