đč What is the Stock-to-Flow (S2F) Model?
S2F model predicts that Bitcoin's value increases as its scarcity rises.
Each halving reduces BTC supply by half, doubling the S2F ratio and making BTC more scarce.
đč The 6-18 Rule: A Simple Yet Powerful Strategy đĄ
Entry: Buy 6 months before each Bitcoin halving.
Exit: Sell 18 months after the halving.
đą Why it works: Historically, the 6-18 rule has consistently outperformed buy-and-hold by capturing the post-halving surge and avoiding price declines.
đč Historical Performance: Quantifying the 6-18 Rule đ
2016 Halving Cycle:
6-Month Pre-Halving Price: ~$400
18-Month Post-Halving Peak: ~$20,000
Profit with 6-18 Rule: 5,000% gain đ
2020 Halving Cycle:
6-Month Pre-Halving Price: ~$7,000
18-Month Post-Halving Peak: ~$69,000
Profit with 6-18 Rule: 885% gain đ
đč Why the S2F 6-18 Rule Works
Predictable Scarcity: Halvings reliably reduce Bitcoinâs supply, creating supply shocks.
Market Hype: The crypto space anticipates each halving event, leading to massive price momentum.
Outperformance of Buy & Hold: This strategy maximizes gains while avoiding later cycle corrections, allowing investors to "sell the top."
đč Is This Strategy Still Relevant? đ€
Next Halving (2024): Analysts expect another cycle of exponential gains, potentially reaching new highs.
Current Price: ~$86,000
Potential Peak Post-Halving: If history rhymes, we could see BTC cross $150,000+ within 18 months after the 2024 halving.
TL;DR: The 6-18 Rule Based on Stock-to-Flow Has Outperformed Buy & Hold Consistently!
đ Buy 6 months before each halving, sell 18 months after, and let the S2F magic work.