Bitcoin’s (BTC) stock-to-flow (S2F) model, one of the most widely cited BTC valuation frameworks, predicts a peak price of $222,000 during this market cycle, but investors should be careful when using the model, according to André Dramotch, the European head of research on stable investments.
The stock-to-flow model It doesn’t consider demand-side factors, and instead centers its price modeling on Bitcoin halvings, which cut the value of newly issued BTC in half every four years, Drogosch said. He added:
“Today, institutional demand through Bitcoin exchange-traded products (ETP) and Treasury holdings exceeds the annual supply reduction from the latest halt by more than seven times.”
Exchange-traded funds, ETPs, and other Bitcoin investment vehicles exist create a price floor for BTCsupporting prices above the $100,000 level.
Crypto investors and analysts continue to debate the price of Bitcoin during the current market cycle and whether BTC has taken the lead, or still has room to run, as the market structure takes hold due to the presence of institutional investors.
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Analysts debate how high BTC will go in this market cycle
Bitcoin still can Reach $200,000 by the end of 2025according to Geoff Kendrick, the global head of Digital Assets research at Standard Chartered, a pro-crypto bank.
October’s flash crash that dropped BTC below $104,000 could present a buying opportunity for investors, which could drive BTC to new highs.
Other analyst forecasts a BTC Price of almost $ 500,000 In 2026, driven by an explosion of the M2 money supply, a metric that tracks the total value of the US dollar worldwide.
https://www.youtube.com/watch?v=kwdsrgnhruo
Higher M2 is seen as a bullish catalyst for BTC, as liquidity from increased money supply flows into assets, increasing prices.
However, crypto industry executives like Tom Lee, the CEO of Investment Research Firm Fundstrat, and Mike Novogratz, the CEO of Crypto Investment Company Galaxy Digital, disagree.
Novogratz said that $ 250,000 by the end of 2025 is Not likely to materialize Unless “Crazy Stuff” is happening, as Tom Lee warned that a BTC’s 50% drawdown can still happen despite institutional adoption.
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