Analysts: Investors should remain cautious when investing in the Bitcoin S2F model.

Golden Finance reports that the Stock-to-Flow (S2F) model for Bitcoin is one of the most widely cited BTC valuation frameworks, predicting that the peak price of Bitcoin in this market cycle could reach $222,000. However, André Dragosch, the head of European research at investment firm 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 on modeling the price based on Bitcoin's halving, which halves the new issuance of BTC supply every four years. He added, “Today, the institutional demand driven by Bitcoin exchange-traded products (ETPs) and corporate treasury holdings has exceeded the annual supply reduction brought by the last halving by more than 7 times.” Exchange-traded funds, ETPs, and other Bitcoin investment tools provide price support for BTC, maintaining 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, as well as whether BTC has reached its peak or still has upside potential.