Bitcoin Price’s Potential Surge to $112K Fueled by ETF Inflows: CryptoQuant
Bitcoin price could reach a new all-time high of $112,000 under the influence of significant inflows into spot Bitcoin exchange-traded funds (ETFs).
According to a recent report by CryptoQuant, the potential peak of $112,000 for Bitcoin’s price hinges on continued buying pressure from the influx of investments into spot Bitcoin ETFs. The analysis further outlined a “worst-case” scenario where Bitcoin could still see a rise to at least $55,000.
“Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly,” said CryptoQuant founder and CEO Ki Young Ju.
“Even with GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B,” said Ju.
#Bitcoin could reach $112K this year driven by ETF inflows, worst-case $55K.https://t.co/HrkV3TU8Ul pic.twitter.com/jBn6HWpt9b
— Ki Young Ju (@ki_young_ju) February 11, 2024
Ju elaborated that historically, the Bitcoin market has shown a pattern where its lowest value points, or market bottoms, align with a Market Value to Realized Value (MVRV) ratio of 0.75, while market peaks coincide with an MVRV ratio of 3.9.
The MVRV ratio compares the market capitalization (the current market value of all mined Bitcoins) to the realized capitalization (the value of all Bitcoins at the price they were bought), serving as a key indicator for assessing Bitcoin’s valuation extremes.
The report indicated that if the current trends in Bitcoin ETF inflows continue, the MVRV ratio may reach levels that typically indicate a market peak, potentially pushing Bitcoin’s price to between $104,000 and $112,000.
However, without increased market hype and with the MVRV ratio at 2.07, Bitcoin’s price was expected to remain between $55,000 and $59,000.
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