Since its inception in 2009, Bitcoin has completely rewritten people's understanding of currency with its fully digital, transparent, and supply-fixed characteristics. As a leader in the cryptocurrency field, Bitcoin reached a historic high of over $69,000 in November 2021, attracting the attention of investors worldwide. However, this upward trajectory has not been smooth—cyclical bull and bear markets have made the volatility of this digital asset a major concern for investors.
Faced with this uncertainty, many investors have begun to seek a scientific valuation framework. The Stock-to-Flow (S2F) model has emerged in this context, predicting price trends by analyzing Bitcoin's scarcity and guiding investors.
Stock-to-Flow Model Core Logic
To understand this model, you first need to