Technical Analysis: The Stock-to-Flow Model and the "Supply Squeeze" of 2026
Many wonder: "Why does the price rise if there are still 1 million coins missing?". The answer lies in the Stock-to-Flow (S2F), the model that measures the scarcity of an asset.
What is S2F?
It calculates the relationship between the existing stock (Stock) and the annual production of new coins (Flow). The higher the number, the scarcer the asset.
Today's Scenario (20,000,000 BTC): With 95.24% of the supply mined, the "stock" is immense, but the "flow" (new coins) has never been so low. The issuance time for the remaining million has been stretched over decades due to the recent halvings.
The Scarcity Shock:
Historically, gold has a high S2F (around 60). With today's milestone and the planned reduction in rewards, Bitcoin solidifies an S2F that exceeds that of gold. This means that Bitcoin is now officially the scarcest asset on the planet.
Price Impact:
The S2F model indicates that when the new supply drops sharply (as is happening now in the final stretch), the price tends to adjust upwards to balance the increasing demand. We are not just trading a currency; we are trading mathematical scarcity.
Conclusion for Traders: The value of Bitcoin does not come from what has already been mined, but from the extreme difficulty of obtaining what remains. With only 1 million coins available for the next 114 years, the market is pricing in the impossibility of inflation.
Mathematics does not lie: Digital Gold > Physical Gold. 📈🚀
#StockToFlow #S2F #BitcoinTechnicalAnalysis #TradingStrategy #BinanceSquare
