The collapse of the benchmark Western Texas Intermediate (WTI) oil market overnight has been big news, as it is the first time in history that prices have turned negative.
Bitcoin prices are still healthy in comparison, however, and are still on track for larger gains, even when priced in oil.
One of the better known and respected BTC pricing models is stock-to-flow (S2F), which basically examines the relationship between the production of supply and the current stock available, calculating Bitcoin’s value through scarcity.
The charts were modeled by crypto community analyst “PlanB” (@100trillionUSD on Twitter) last year, and they have proved to be accurate so far.
With one BTC now being worth around 600 barrels of oil, the model still holds strong.
— PlanB (@100trillionUSD) April 20, 2020
The analyst concluded that the model for oil was not related to Bitcoin price, which has held steady around the US$7 [AU$11] area for the past month.
S2F also predicts larger gains for BTC following the halving, which is only three weeks away now.
Previous halving events in 2012 and 2016 have resulted in epic rallies the following years; however, there was not a global recession and lockdown back then, so things may be different this time around.
Featured image courtesy of Zbynek Burival/Unsplash