Bitcoin Price Could Reach New All-Time High of $112,000
The price of Bitcoin has the potential to reach a new all-time high of $112,000, driven by significant inflows into spot Bitcoin exchange-traded funds (ETFs), according to a recent report by CryptoQuant. The analysis suggests that continued buying pressure from investments into spot Bitcoin ETFs could lead to this peak price. Even in a “worst-case” scenario, Bitcoin could still see a rise to at least $55,000.
Bitcoin Market Inflows and Potential Price Increase
CryptoQuant founder and CEO Ki Young Ju stated that the Bitcoin market has seen $9.5 billion in spot ETF inflows per month, potentially boosting the realized cap by $114 billion yearly. Even with outflows from Grayscale Bitcoin Trust (GBTC), a rise of $76 billion could elevate the realized cap from $451 billion to $527-565 billion.
Market Value to Realized Value Ratio as an Indicator
Ju explained that historically, the lowest value points of the Bitcoin market 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 current market capitalization to the realized capitalization and serves as an indicator for assessing Bitcoin’s valuation extremes.
Impact of Recent ETF Inflows
Recent market activity has demonstrated the influence of ETF inflows on Bitcoin price. At present, Bitcoin is trading at $48,129, 12.57% higher than a week ago. Inflows into new spot Bitcoin ETFs have reached $8 billion over 10 days, with BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin ETF (FBTC) leading the way with $2.6 billion and $2.2 billion respectively.
Anticipated Bitcoin Halving Event
The market is also anticipating the Bitcoin halving event in April, which is expected to further drive up the price due to the reduced mining reward and resulting scarcity.
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