The Stock-to-Flow (S2F) model of Bitcoin is one of the most widely cited BTC valuation frameworks, this model predicts that the peak price of Bitcoin for this market cycle could reach $222,000. However, André Dragosch, head of European research at the investment firm Bitwise, stated that investors should exercise caution when using this model. Dragosch emphasized that the S2F model does not take into account demand-side factors but rather focuses on Bitcoin's halving, which means that the supply of new BTC is halved every four years. He added: "Today, institutional demand from exchange-traded products (ETPs) on Bitcoin and corporate treasury holdings has exceeded more than 7 times the annual reduction in supply resulting from the last halving." Exchange-traded funds, ETPs, and other Bitcoin investment vehicles provide price support for BTC, keeping the price above $100,000. With the participation of institutional investors, the market structure is becoming more mature, and investors as well as analysts continue to discuss the price developments of Bitcoin in this market cycle, as well as whether BTC has reached its peak or if there is still room for an increase.
