Analyst: Investors Should Remain Cautious When Using the Bitcoin S2F Model

Jinse Finance reported that the Bitcoin Stock-to-Flow (S2F) model is one of the most widely cited BTC valuation frameworks, and this model predicts that the peak price of Bitcoin in the current market cycle could reach $222,000. However, André Dragosch, Head of Research Europe at Bitwise, stated that investors should exercise caution when using this model. Dragosch pointed out that the S2F model does not take demand-side factors into account, but instead focuses its price modeling on Bitcoin halving events, where the new BTC supply is halved every four years. He added: "Nowadays, institutional demand through Bitcoin-traded products (ETPs) and corporate treasury holdings has exceeded the annualized supply reduction from the most recent halving by more than seven times." Exchange-traded funds, ETPs, and other Bitcoin investment tools provide price support for BTC, keeping the price above $100,000. With the participation of institutional investors, the market structure has become more mature. Investors and analysts are still discussing the price trend of Bitcoin in this market cycle, and whether BTC has already peaked or still has room for further growth.