Stock-to-Flow compares Bitcoin’s existing circulating supply with annual new supply. It is the canonical scarcity ratio in this family because it turns the issuance schedule into a single stock-versus-flow measure.
A higher reading means outstanding supply is large relative to annual issuance. A lower reading means new supply is still large relative to stock. It is most useful with Halving Epoch, Annualized Inflation Rate, and New Supply Issued, which explain why the ratio changes.
The main caveat is scope. Stock-to-Flow describes supply mechanics, not demand. A higher ratio means a tighter issuance regime, but it does not by itself determine market valuation or short-horizon price behavior.
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