Investors should be cautious when using BTC stock-to-flow model

André Dragosch, an investment analyst at Bitwise, advises caution regarding the Bitcoin Stock-To-Flow (S2F) model for predicting Bitcoin prices. While this framework forecasts a peak price of $222,000 in the current market cycle, Dragosch points out its limitations, particularly its focus on supply factors, primarily Bitcoin's halvings every four years, and neglect of demand-side aspects. He notes that institutional demand, such as from Bitcoin exchange-traded products (ETPs) and treasury holdings, currently exceeds the supply reduction by more than seven times. Other analysts, like Geoff Kendrick from Standard Chartered, maintain that Bitcoin still has potential for growth despite market fluctuations, while opinions vary on future price predictions. Tom Lee and Mike Novogratz have differing perspectives on how high Bitcoin can go, reflecting the ongoing debate within the crypto community over investment strategies amidst evolving market conditions.

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