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4 quantitative models and metrics for bitcoin you should know
“The most popular and relevant quantitative models and metrics and the introduction of a new measure.”
In this piece I will guide you through some of the most relevant quant models and metrics that will be relevant to you if you’re trading or investing in bitcoin. What are the models that made it to this list? Here’s the list and we’ll dive into them one by one! Before I start diving into all the different metrics, I like to emphasise that (a) this is not investment advice and (b) never act upon just one measure. If you like to use these kind of metrics to support your investment decisions, I strongly advice to use them in combination to avoid acting on false positives.
- Stock-To-Flow Model (S2F)
- Market Value to Realised Value (MVRV)
- Network Value to Transactions (NVT)
- CoinDays Destroyed (CDD)
Next to these metrics and models I also introduce a new metric which I developed myself:
5. Collective Profit and Loss Taking (CPLT)
Stock-To-Flow Model
The stock-to-flow model is developed by the anonymous PlanB and was first mentioned in this article. It’s one of the most discussed models of 2019 because of the outrageous price…
