Bitwise: BTC's S2F price model flawed, ignores ETF demand

André Dragosch, Head of Research for Europe at Bitwise, has urged caution when applying the Stock-to-Flow (S2F) model to predict Bitcoin's price in the current cycle, Cointelegraph reported. Dragosch pointed out that the model's primary limitation is its exclusive focus on the Bitcoin halving for price modeling while completely ignoring the demand side. He explained that institutional demand, driven by vehicles like Bitcoin ETFs, now exceeds seven times the annual supply reduction resulting from the halving. The S2F model predicts a peak price of $222,000 for BTC this cycle.