"Bitcoin: Price hard to predict with 'Stock-to-Flow' model… Demand is much larger"

An analysis has come out saying investors should be cautious about the 'Stock-to-Flow (S2F)' model, a representative indicator used to predict Bitcoin (BTC) prices.

On the 27th (Korean time), André Dragosch, head of European research at Bitwise, pointed out that "the S2F model does not reflect demand-side factors" and that "it is difficult to explain the price by supply reduction from the Bitcoin halving alone."

The S2F model's prediction for this cycle's Bitcoin peak reaches $222,000.

This can be interpreted as meaning that, when accounting for demand, an even larger rise is expected. Dragosch said, "Currently institutional investors' holdings in exchange-traded products (ETPs) and corporate treasury holdings exceed seven times the annual supply reduction from the recent halving," adding that "institutional products like ETFs and ETPs are supporting Bitcoin's downside and keeping it at levels above $100,000."