According to Jinse, the stock-to-flow (S2F) model for Bitcoin is one of the most widely cited BTC valuation frameworks, predicting a peak price of $222,000 in this market cycle. However, André Dragosch, head of European research at Bitwise, advises investors to be cautious when using the model. Dragosch points out that the S2F model does not account for demand-side factors and instead focuses on Bitcoin halvings, which reduce new BTC supply every four years. He added that institutional demand through Bitcoin ETPs and corporate treasuries now exceeds the annualized supply reduction from the last halving by more than seven times. Exchange-traded funds, ETPs, and other Bitcoin investment tools have provided price support, keeping BTC above $100,000. With increased institutional participation, the market structure is becoming more mature, and investors and analysts continue to debate Bitcoin's price trajectory in this cycle and whether BTC has peaked or still has upside potential.
Analyst Warns Investors to Exercise Caution with Bitcoin S2F Model
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